Oil hits lowest level since January as US data fans fuel demand fears

Oil hits lowest level since January as US data fans fuel demand fears

Oil edged to its lowest since the start of the year in volatile trading, after US government data showed an unexpectedly large build in fuel stocks, feeding fears about demand in a market already spooked by an uncertain economy. Brent futures for February delivery fell $1.62 to $77.73 a barrel, a 2 per cent loss, by 11.14 a.m. EST (8.14pm UAE time). US crude fell $1.80, or 2.4 per cent, to $72.45 per barrel. During the session, Brent hit its lowest since January 3. US distillate stocks posted a build 6.2 million barrels, according to the Energy Information Administration, far exceeding estimates for a 2.2 million barrel rise. Gasoline inventories climbed 5.3 million barrels against expectations for an increase of 2.7 million barrels. The build in fuel stocks outweighed a 5.2 million barrel draw in crude stocks. The American Petroleum Institute had reported a crude stocks draw of around 6.4 million barrels, according to market sources. Lending some support to prices, China announced the most sweeping changes to its anti-COVID regime since the pandemic began, while RIA cited Russia’s deputy foreign minister as saying Russia was concerned about a build-up of oil tankers in the Bosphorus Strait. China’s crude oil