Oil prices extends losses on Wednesday as a much bigger-than-expected surge in the U.S. crude inventories and expectations of further interest rate hikes sparked concerns over the prospect of weaker fuel demand and economic recession.
Brent crude futures slid 72 cents, or 0.8%, to $84.86 per barrel by 0442 GMT, while U.S. West Texas Intermediate (WTI) crude futures shed 68 cents, or 0.9% to $78.38.
U.S. crude inventories rose by about 10.5 million barrels in the week ended Feb. 10, according to market sources citing American Petroleum Institute (API) figures on Tuesday. Gasoline stocks rose by about 846,000 barrels, while distillate stocks rose by about 1.7 million barrels. U.S. crude inventories increased a total of 13 million barrels last year, according to API data, while crude stored in the nation’s Strategic Petroleum Reserves sunk by 221 million barrels. SPR inventory is at 371.6 million barrels—the lowest amount of crude oil in the SPR since December 1983. But the Biden Administration this week announced there would be further releases from the SPR in the amount of 26 million barrels. NN: the release of strategic crude has increased total US inventories this past year. Refineries are in maintenance mode. Their is certainly no shortage….. So why did Biden release EMERGENCY reserves? You do not think he is using whats left of emergency reserves to manipulate the oil market lower…. Knowing that demand will soon outstrip supplies….. Would he do that?