Oil prices drop amid build in US inventories

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NEW YORK – Oil prices fell noticeably on Wednesday after data showed a larger-than-expected rise in US crude stockpiles, reported Xinhua.

The West Texas Intermediate (WTI) for March delivery shed US$2.46, or 3.12 per cent, to settle at US$76.41 a barrel on the New York Mercantile Exchange. Brent crude for April delivery lost US$2.62, or 3.07 per cent, to close at US$82.84 a barrel on the London ICE Futures Exchange.


The US Energy Information Administration (EIA) reported Wednesday that the country’s commercial crude oil inventories increased by 4.1 million barrels during the week ending Jan 27. On average, analysts polled by S&P Global Commodity Insights had forecast a rise of 0.3 million barrels in US crude supplies.

According to the EIA, total motor gasoline inventories increased by 2.6 million barrels last week, while distillate fuel inventories climbed by 2.3 million barrels.

Traders also looked to the Federal Reserve as the US central bank on Wednesday approved a quarter-point interest rate hike. – Bernama