Brent drops to two-week low after stocks shock
Aerial view of a drilling rig operated by China Petrochemical Corporation located in an offshore oil field on December 2, 2020 in Dongying, Shandong Province of China.
Xu Jianjun | China Visual Group | Getty Images
Oil prices fell for the second day in a row on Wednesday, with Brent hitting its two-week low after official figures showed a surprise jump in US crude inventories.
Brent crude fell $ 1.36, or 1.6%, to $ 83.22 a barrel at 1:30 a.m. GMT, a two-week low, after falling 2.1% in the previous session.
US oil fell $ 1.28, or 1.6%, to $ 81.38 a barrel, a week-low, after falling 2.4% on Wednesday.
Crude inventories rose 4.3 million barrels last week, the US Department of Energy said, more than double the 1.9 million barrel gain expected by analysts.
The “large” inventory build-up came “following a surge in net crude oil imports and still slow processing at refineries,” Citi Research commodities analysts said in a note.
Still, gasoline inventories have fallen 2 million barrels to their lowest level in nearly four years, even as U.S. consumers struggle with rising prices to refuel.
At WTI’s delivery center in Cushing, Oklahoma, crude storage is the most depleted in three years, with prices on longer-term futures indicating that supplies will remain low for months.