Oil Updates — Crude prices drop; Devon Energy misses profit estimates

Oil Updates — Crude prices drop; Devon Energy misses profit estimates

RIYADH: Oil dropped for a second day on Wednesday as an industry report pointed to ample supplies in the US and expectations of further interest rate hikes sparked concern over fuel demand and the economic outlook. Brent crude futures fell 62 cents, or 0.72 percent, to $84.96 a barrel at 03.15 p.m. Saudi time, while US West Texas Intermediate crude dropped 66 cents, or 0.83 percent to $78.40. US crude inventories rose by about 10.5 million barrels in the week ended Feb. 10, according to market sources citing American Petroleum Institute figures on Tuesday. Shale oil producer Devon Energy on Tuesday missed Wall Street estimates for fourth-quarter profit due to a hit to production from severe cold weather in the US during the period, as well as higher expenses on personnel. Devon had said in January that it estimated its fourth-quarter production to be 2 percent lower, with operations at its Williston basin in North Dakota affected the most. For 2023, the company forecast production in the range of 643,000 to 663,000 barrels of oil equivalent per day. The company’s output averaged 636,000 boepd in the October-December quarter. Devon said its expenses increased 1 percent in 2022, driven by higher