Brent falls to two-week low after inventory shock

Oil costs fell on Wednesday for a second straight day, with Brent hitting its lowest in two weeks after official figures confirmed a shock leap in U.S. inventories of crude, Trend studies with regards to Reuters.

Brent crude dropped $1.36, or 1.6%, to $83.22 a barrel by 0130 GMT, a two-week low, having declined by 2.1% within the earlier session.

U.S. oil fell $1.28, or 1.6%, to $81.38 a barrel, a one-week low, after dropping 2.4% on Wednesday.

Crude shares rose by 4.3 million barrels final week, the U.S. Energy Department mentioned, greater than double the 1.9 million-barrel acquire forecast by analysts.

The “hefty” inventory construct got here “on the back of a large jump in net imports of crude oil and still sluggish refinery processing,” Citi Research commodities analysts mentioned in a word.

Still, gasoline shares fell by 2 million barrels to the bottom in almost 4 years, whilst U.S. shoppers battle with rising costs to fill their tanks.

At the WTI supply hub in Cushing, Oklahoma, crude storage is essentially the most depleted in three years, with costs for longer-dated futures contracts indicating provides will keep low for months.

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