Oil fell after a second consecutive week of increase in crude oil reserves following a report by the US government.
Futures in New York fell as much as 3.4% on Wednesday. Domestic crude stocks rose by 3.29 million barrels last week to their highest since August, according to a report by the Energy Information Administration.
Prices weakened earlier in the session amid hopes that the Federal Reserve may begin to ease stimulus in the first move toward a final interest rate hike. The central bank is expected to announce later on Wednesday that it will begin winding down the bond-buying program it did last year. Meanwhile, OPEC+ meets around Thursday to review plans to gradually restore production halted during the pandemic. The US has intensified pressure on the group to increase supplies.
West Texas Intermediate crude futures for December delivery fell $2.26 to $81.65 a barrel at 10:35 a.m. on the New York Mercantile Exchange. Brent for January settlement was down $1.97 to $82.75 a barrel on the ICE Futures Europe exchange.
Don’t miss a story! Stay connected and informed with Mint.
download
Our App Now!!
.