Oil prices dipped on Wednesday as industry data revealed that crude oil stocks surged more than expected and fuel inventories unexpectedly increased in the United States, the world's top oil user, last week.
Brent oil futures declined 1.13 cents, or 1.3 percent, to $85.27 a barrel by 0902 GMT after reaching a seven-year high on Tuesday.
After rising 1.1 percent the previous session, West Texas Intermediate (WTI) futures were down $1.44, or 1.7 percent, at $83.21 per barrel.
After rising 1.1 percent the previous session, West Texas Intermediate (WTI) futures were down $1.44, or 1.7 percent, at $83.21 per barrel.
Crude oil stockpiles increased by 2.3 million barrels in the week ending Oct. 22, according to market sources quoting American Petroleum Institute data late Tuesday. That was greater than the 1.9 million barrel gain predicted.
In comparison to expectations, gasoline stockpiles grew by 500,000 barrels and distillate stocks surged by 1 million barrels.
Prices are beginning to seem overbought, according to experts, after increasing for the previous eight weeks in Brent and ten weeks in WTI.
After rising 1.1 percent the previous session, West Texas Intermediate (WTI) futures were down $1.44, or 1.7 percent, at $83.21 per barrel.
Crude oil stockpiles increased by 2.3 million barrels in the week ending Oct. 22, according to market sources quoting American Petroleum Institute data late Tuesday. That was greater than the 1.9 million barrel gain predicted.
In comparison to expectations, gasoline stockpiles grew by 500,000 barrels and distillate stocks surged by 1 million barrels.
Prices are beginning to seem overbought, according to experts, after increasing for the previous eight weeks in Brent and ten weeks in WTI
"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," said Craig Erlam, senior market analyst at OANDA.
Storage tanks in the Cushing, Oklahoma, delivery hub for WTI oil are more depleted than they have been in the past three years, while prices for longer-dated futures contracts indicate that supplies will remain at those levels for months.
However, a patchwork recovery throughout the world from the biggest health catastrophe in 100 years, when the COVID-19 pandemic slashed demand for months on end, has frequently raised concerns about price sustainability.
"The global oil market is still at risk due to not fully containing the coronavirus and its variants," said Stephen Brennock of oil broker PVM.
"A flare-up in cases over the summer weighed heavily on prices and this could feasibly happen again if the situation worsens."
.
