West Texas Intermediate crude futures fell 27 cents, or 0.5%, to $ 53.04 a barrel at 0147 GMT, after two days of gains in the hope of big spending for relief from the emerging coronavirus under the new US President Joe Biden.
Likewise, Brent crude futures fell 26 cents, or 0.5%, to $ 55.82 a barrel.
US crude oil inventories rose 2.6 million barrels in the week ending January 15, according to data from the American Petroleum Institute, an industry group, compared to analysts’ expectations in a Reuters poll of a 1.2 million barrel drop.
Oil prices exceeded $ 56 a barrel on Wednesday, supported by expectations that the new US administration will adopt huge stimulus spending to boost demand, as well as OPEC restrictions on production and expectations of lower US crude stocks.
On Tuesday, US Treasury Secretary Candidate Janet Yellen urged lawmakers to take a big step in terms of spending on stimulus to mitigate the repercussions of the Corona pandemic. Analysts said that the dollar’s decline after these statements contributed to the rise of oil.
Brent crude rose to $ 56.32 a barrel on Wednesday and US West Texas Intermediate crude jumped to $ 53.49 a barrel.
Brent crude this month recorded its highest level in 11 months, reaching $ 57.42 a barrel, supported by Saudi Arabia’s pledge to further voluntary cuts in production, while most OPEC + member states agreed to keep production at its level unchanged in February. (Reuters)