SULAIMANI (ESTA) — Oil fell on Wednesday after an industry report showed U.S. gasoline stocks dropped more than expected last week.
Brent crude futures dropped 66 cents to $81.77 at 0635 GMT, erasing Tuesday’s 38 cent gain.
U.S. West Texas Intermediate (WTI) crude futures fell 78 cents to $79.98 a barrel, extending a 12 cent loss from Tuesday.
“With holiday season around the corner, increase in travelling demand may be the reason behind the decline in U.S. gasoline stocks. [Now] that may bring President [Joe] Biden more pressure to release the U.S. Strategic Petroleum Reserve, which may put oil prices at risk,” said Leona Liu, analyst at Singapore-based DailyFX, according to Reuters.
“In the short-term, the upcoming EIA inventory report may act as a catalyst for the next move,” she said, referring to the Energy Information Administration, which will release its weekly report later on Wednesday.
U.S. President Joe Biden has been considering releasing oil from the Strategic Petroleum Reserve (SPR) to cool gasoline prices, which hit a record high at California pumps this week. Lawmakers, however, have mixed views on whether it is needed. The United States is the world’s biggest oil user.
U.S. House Majority Leader Steny Hoyer said late on Tuesday he did not agree with Senate Majority Leader Chuck Schumer’s call on Sunday for tapping the SPR to lower gas prices, saying the reserve was there to fill a crude oil supply gap in times of emergency.
(Esta Media Network/Reuters)
