Oil prices fell on Friday after climbing to a seven-year high this week as a surge in US crude and fuel inventories prompted investors to take the rally.
THE future on Brent crude oil they fell by 1.52% to 87.03 dollars a barrel. Contracts had previously fallen by 3%, the largest decline since December 20. The global benchmark hit $ 89.50 a barrel on Thursday, the highest level since October 2014.
THE future US West Texas Intermediate crude oil fell 1.69% to $ 84.09 a barrel. And US crude contracts fell in previously of 3.2%, which is also the largest decline since December 20, after rising to its highest level since October 2014 on Wednesday.
The recent rise in crude oil prices appears to have lost momentum on Thursday as Brent and US crude finished the trading session with modest losses.
The benchmark has risen more than 10% since the beginning of the year due to fears of low supplies.
Gasoline inventories rose 5.9 million barrels in the United States, the world’s largest oil consumer, to their highest level since February 2021, according to the US Energy Information Administration. Crude oil inventories increased by 515,000 barrels last week, missing industry expectations.
Administration data also showed a modest decline in crude oil consumption in refineries, indicating a decline in demand.
Supply fears increased this week after Yemen’s Houthi militia attacked the UAE, OPEC’s third largest producer, while Russia, the world’s second largest oil producer, amassed troops in large numbers near the border with Ukraine, raising fears of a possible invasion.
However, the International Energy Agency said Wednesday that oil supply is expected to outstrip demand soon, as some producers are expected to pump at or above all-time highs, while demand holds up despite the spread of oil. Omicron from the Corona virus.
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