Oil extends losses after US inventories surged unexpectedly
Oil prices fell on Thursday, after official figures showed an unexpected increase in US inventories and extended the losses.
Brent crude was down 11 cents to $78.53 as of 0137 GMT, after falling 0.6% on Wednesday. West Texas Intermediate (WTI) oil, which fell 0.6% in the previous session, fell 5 cents to $74.78 a barrel.
The U.S. Department of Energy's Energy Information Administration (EIA) said on Wednesday that U.S. oil and fuel stockpiles had risen last week. Crude inventories rose 4.6 million barrels last week to 418.5 million, according to EIA data.
Both contracts climbed into high territory early in the session. After two days of price losses, oil bulls have sought a new cap that must be crossed after Brent rallied above $80 for the first time in nearly three years on Tuesday.
The increase in inventories came as production in the United States returned to pre-Ida Hurricane levels about a month ago. Production rose to 11.1 million barrels per day last week.
On the production side, the Organization of the Petroleum Exporting Countries and its allies, including Russia, are expected to reach an agreement next week to add 400,000 barrels per day (bpd) to November production.
China is the world's largest importer of crude oil and the second largest user after the United States.
Analysts say that China's electricity crisis and housing market concerns have affected sentiment recently, with any negative impact on the world's second-largest economy likely to mean a blow to oil demand.
Related Articles
Oil prices are rising as supply concerns increase amid expectations of a prolonged conflict in the Middle East
Oil prices continued to rise following US and Iranian attacks on ships serving their respective purposes
Oil prices closed higher this week following renewed US-Iran hostilities
