These are the largest daily percentage declines of both benchmarks since the beginning of August and the lowest closes for Brent since October 7 and WTI since October 13.
The Weekly crude stocks increased more than 3.3 million barrels, higher than expected, but gasoline prices fell to their lowest level since November 2017.
Supply to the US oil market has tightened, with stocks at the Cushing, Oklahoma, storage facility at their lowest level in three years.
The The US Federal Reserve, as expected, said it will begin to reduce its asset purchases this month.. Traders say this could curb speculative purchases of risky assets, including oil.
“The markets have already been under pressure,” said Phil Flynn, an analyst at Price Futures Group. “We are down due to profit taking from today’s Fed meeting.”
US President Joe Biden speaking at the COP26 world climate summit in Glasgow, blamed the rise in oil and gasoline prices on OPEC countries’ refusal to pump more crude.
The Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC +, is meeting on Thursday and is expected to confirm plans to maintain planned monthly supply increases, despite calls to accelerate them.
As reported on Wednesday by the government’s Energy Information Administration (EIA), crude inventories grew by 3.3 million barrels in the week to October 29, to 434.1 million barrels. Analysts consulted by Reuters expected a rise of 2.2 million barrels.
Source From: Ambito
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