On Wednesday, oil stock levels in the United States increased more than anticipated, according to industry statistics, but show fears have restrained the losses.
After reaching a session high of 26 cents, Brent crude futures for December dropped 72 cents, or 0.8%, to $ 92.80 a barrel by 03:30 GMT.
The first American crude futures gave up their gains from the previous day and decreased by 48 cents, or 0.6%, to 84.84 dollars at first delivery.
“The threat of supply discounts in recent weeks is outweighed by the potential of a global economic downturn and the tightening of monetary policy.
The week ending October 21 saw an increase in US oil stocks of 4. 5 million barrels, according to market sources citing data from the American Petroleum Institute.
While rising petroleum stock levels heightened concerns that a worldwide recession would lower demand, ongoing supply constraints keep prices trading in a constrained range.
According to Stephen Ennis, the administrative partner of (SPA) Asset Management, “reducing OPEC output, which is implemented as of November, and the new European Union sanctions against Russian oil, which fall from December, should produce a batch (prices).”
In an effort to lower the high cost of fuel, US President Joe Biden revealed a plan last week to sell the last record amount of strategic oil reserves by the end of the year.
Due to the rise in American stocks and worries about supply-side losses, oil prices are falling.
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