Crude oil retreats from multi-year highs after US stock build

Crude oil retreats from multi-year highs after US stock build

On Monday, OPEC, Russia and other allies, known as OPEC+, chose to stay with a plan to increase output gradually and not boost it further as the United States and other consumer nations have been urging.





Reuters









October 06, 2021 / 09:20 PM IST





Oil prices dropped nearly 2% on Wednesday after hitting a multi-year highs, taking a breather from its torrid gains of late after US crude inventories rose unexpectedly.

The latest surge in the price of crude had been underpinned by the refusal of the Organization of the Petroleum Exporting Countries and allies to boost output and comes against a backdrop of concern about tight energy supply globally.

On Monday, OPEC, Russia and other allies, known as OPEC+, chose to stay with a plan to increase output gradually and not boost it further as the United States and other consumer nations have been urging.

"An energy crisis is unfolding with winter in the northern hemisphere still to begin, and sets the stage for even higher oil prices," said Stephen Brennock of oil broker PVM.

Brent crude hit $83.47 a barrel, its highest since October 2018, but by 10:52 a.m. ET (1452 GMT) was