Oil prices recede on increased US inventories

After reaching the highest level since 2014, oil prices dip slightly ahead of the weekend.

Photo: Agustin Marcarian/REUTERS / X03747

Oil prices recede on Friday after reaching the highest level in seven years this week, prompting investors to seek a profit from a surge in US crude and fuel inventories, writes Reuters.

A barrel of Brent crude, the European benchmark, costs USD 86.67 Friday morning against USD 88.77 Thursday afternoon. Concurrently, a barrel of WTI trades at USD 83.75 against USD 86.41.

The latest rally in crude prices seems to have lost its momentum Thursday. Brent and WTI ended their trading session with minor losses. Both have risen by more than 10 percent so far this year due to concerns about supply tightness.

”Investors made short-term adjustments in their positions after an increase in US inventory and ahead of the weekend,” says General Manager for Research at Nissan Securities Hiroyuki Kikukawa to Reuters.

Gasoline stockpiles in the US, the world’s biggest consumer of oil, rose by 5.9 million barrels to the highest level since February 2021, according to the US Energy Information Administration (EIA).

Counter to industry expectations, crude stockpiles rose by 515,000 barrels last week.

A slump on stock markets also impacts the commodities markets, which are affected by investors’ increasing worries about the possibility of central banks raising interest rates this year in an effort to rein in inflation.

EIA also reports a small dip in refinery runs, which signals lower demand for crude.

Friday morning, a troy ounce of gold costs USD 1,840.80 against USD 1,845.39 Thursday afternoon.

On the industrial metals market, a tonne of copper costs USD 10,070 against 10,018 Thursday afternoon.

High oil and gas prices give Norway record-high revenues

Professor: Tense gas crisis at risk at flaring up again next winter

Brent oil climbs to 2014 high as geopolitical unrest returns

More from EnergyWatch

Vattenfall secures public funding for hydrogen venture in the UK

By producing hydrogen directly from turbines, the utility wants to reduce energy loss and save money. The company has just received state subsidies to develop the first turbine of this kind in the UK, providing a much more efficient solution than other alternatives, says CEO Anna Borg.

Further reading

Related articles

Latest News

See all jobs