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Oil Prices Decline on U.S. Inventories Record Growth

Oil prices continued to drop during the latter trading session after official data showed an increase in U.S. crude inventories, as the results according to forecasts sharply differed, as production reached a record high.

U.S. WTI oil futures with delivery on January dropped by 0.52 percent, to $57.81 per barrel, while the International benchmark Brent eased by 0.24 percent, to $62.86 per barrel at 8.45 GMT. 

oil prices slip on us reserves risePhoto: Flickr

U.S. oil inventories grew for the week, which ended on November 22, by 1.6 million barrels to reach 451.95 million barrels, the Energy Information Administration (EIA) reported on Wednesday. According to the EIA data, gasoline stocks advanced 5.1 million barrels to 225.98 million barrels, and distillate inventories added 0.725 million barrels to touch 116.41 million.

Recall, oil rated were growing this week amid expectations that China and the U.S., the world’s two largest oil consumers, would soon conclude a preliminary agreement that would put an end to the 16-month trade war.

Crude prices were also under pressure after airstrikes, which led to the suspension of production at the El Feel field in Libya, which was producing about 70,000 bpd, the Libyan state company National Oil Corporation (NOC) stated.