Oil falls as surging US fuel stockpiles raise demand concerns

Oil falls as surging US fuel stockpiles raise demand concerns

U.S. gasoline stockpiles rose by 7.1 million barrels in the week to December 31, the American Petroleum Institute (API) reported late on Tuesday. Distillate stockpiles climbed by 4.4 million barrels in the week.







Reuters









January 05, 2022 / 09:17 AM IST





Oil prices fell on Wednesday as rising fuel stockpiles in the United States raised concerns of declining demand in the world’s biggest oil consumer amid a massive spike in COVID-19 cases caused by the Omicron variant.

U.S. gasoline stockpiles rose by 7.1 million barrels in the week to December 31, the American Petroleum Institute (API) reported late on Tuesday. Distillate stockpiles climbed by 4.4 million barrels in the week.

The surging stockpiles, which exceeded analysts’ expectations, undermined the bullish outlook from investors during the previous session when price climbed more than 1% as market participants took the decision of major producers to add supply next month as a sign of confidence that surging COVID-19 cases would not hit demand for long.

Brent crude futures fell 28 cents, or 0.4%, to $79.72 a barrel at 0329 GMT after hitting a high of $80.26, while U.S. West Texas Intermediate (WTI) crude futures fell 29