Profit taking falls in oil as US inventories increase

TOKYO (Archyde.com) – Retreated oil prices Today, Friday, following rising to a seven-year high this week, as an increase in US crude and fuel inventories prompted investors to take profits from the rally.
Brent crude futures fell $2.46, or 2.8 percent, to $85.92 a barrel by 01:36 GMT. Contracts had earlier fallen 3 percent, the biggest decline since December 20. The global benchmark touched $89.50 a barrel on Thursday, the highest level since October 2014.
US West Texas Intermediate crude futures fell $2.61, or 3.1 percent, to $82.94 a barrel. US crude contracts fell earlier 3.2 percent, which is also the biggest decline since December 20, following rising to its highest level since October 2014 on Wednesday.
It seems that the recent increase in crude prices lost momentum on Thursday when Brent and US crude ended the trading session with modest losses. The benchmark has risen more than 10 percent since the beginning of the year amid fears of tight supplies.
Gasoline stocks in the United States, the world’s largest oil consumer, rose 5.9 million barrels, to the highest level since February 2021, according to the US Energy Information Administration. Crude stocks rose 515,000 barrels last week, missing industry expectations.
Administration data also showed a limited decline in crude consumption in refineries, which indicates a decline in demand.
The International Energy Agency said on Wednesday that oil supply is expected to exceed demand soon, as some producers are expected to pump at or above all-time highs, while demand holds up despite the spread of the Omicron from the Corona virus.