Build in U.S. Inventory Causes Oil To Dip – 20 January, 2022

After hitting seven-year highs this week, oil prices plunged as U.S. crude stockpiles grew. Brent crude futures were 2.8% or $2.46 lower at $85.92 per barrel. U.S. West Texas Intermediate crude futures fell 3.1% or $2.61 to $82.94. Both benchmarks have gained more than 10% so far this year amid concerns over tight supply. Gasoline inventories rose in the U.S., the worlds biggest oil consumer, by 5.9 million barrels, its highest in 11 months. Crude stockpiles were up by 515,000 barrels last week despite analysts expectations. Slumping stock markets and over concerns that the Federal Reserve may move to raise rates this year also weighed on sentiment.