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Oil Prices Fall 1%

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Oil Prices Fall 1%

B
Benzinga

8 Views • Oct 27, 2021

Description

Oil prices dropped on Wednesday as industry information showed that stockpiles are rising more than expected. Fuel reserves in the United States rose unexpectedly last week, which shook the system because the U.S. is the world’s largest oil consumer. Brent oil futures fell 88 cents—about 1%—to $85.53 per barrel, coming close to a 7-year high, and West Texas Intermediate futures fell 95 cents—around 1.1%—to $83.70 yesterday. Crude oil inventories are rising around the world, picking up 2.3 million barrels at the end of last week. The American Petroleum Institute only estimated a 1.9 million barrel increase. Gasoline inventories picked up around half a million barrels, and distillate stocks rose about 1 million barrels even though both were expected to fall. Analysts believe oil is starting to look overbought with Craig Erlam of OANDA saying, “Barring more bullish headlines, which is possible considering what we saw yesterday, we could see some profit-taking in Brent and WTI, which would be healthy for the market.” Price sustainability, however, has become a key concern for investors. Stephen Brannock of PVM said, “the global oil market is still at risk due to not fully containing the coronavirus and its variants.”