Oil prices fell on Wednesday as industry data pointed to a large increase in crude oil and distillate stocks in the United States, the world’s largest oil consumer, and as pressure grew on OPEC to increase supply.
Futures on Brent oil fell 71 cents or 0.9% to $ 84.00 per share.
US West Texas Intermediate (WTI) crude oil futures fell $ 1.10, or 1.3%, to $ 82.81 per share. barrel, after falling to a low of $ 82.26 previously.
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“Crude oil prices are falling after the API reported for the sixth week in a row building crude oil stocks and as the Biden administration exhausts all possible prayers for OPEC + members before exploiting their strategic petroleum reserve,” said Edward Moya, senior analyst at OANDA .
“World leaders are running out of cards to push OPEC +, and that should mean that the decline that comes from exploiting strategic reserves from China or the United States is likely to be bought in.”
President Joe Biden, speaking at a climate summit in Glasgow, accused an increase in oil and gas prices of a refusal by OPEC countries to pump more crude oil.
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OPEC + meets on Thursday to review its policy and is expected to reaffirm plans for monthly increases.
U.S. stocks of crude oil and distillate fuel rose last week while gasoline fell, according to market sources quoting the American Petroleum Institute on Tuesday. [API/S]
Raw stocks rose by 3.6 million barrels in the week ending October 29. Gasoline stocks fell by 552,000 barrels and distillate stocks rose by 573,000 barrels, the data showed, according to sources, who spoke on condition of anonymity.
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Analysts polled by Reuters had expected crude oil inventories to have risen last week.
Data from the U.S. Energy Information Administration, the statistical section of the U.S. Department of Energy, will be released later on Wednesday.
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As a sign that high prices are encouraging more supply elsewhere, BP said on Tuesday that it will increase investment in its U.S. shale oil and gas business on land to $ 1.5 billion in 2022 from $ 1 billion this year.
(Reporting by Jessica Jaganathan; Editing by Richard Pullin and Sam Holmes)