SULAIMANI (ESTA) — Oil prices dropped on Thursday after industry data showed a surprise build in U.S. crude inventories that reignited pandemic-led demand concerns.
Brent crude futures dropped 15 cents to $55.93 a barrel at 0737 GMT, while U.S. Texas Intermediate (WTI) crude futures fell 18 cents to $53.13 a barrel, following two days of gains on expectations of massive coronavirus relief spending under new U.S. President Joe Biden.
Data from the American Petroleum Institute showed that U.S. crude oil inventories had risen 2.6 million barrels in the week to January 15, according to Reuters.
“Oil prices look a tad vulnerable to potential profit-taking after U.S. crude stockpiles bearishly rose 2.56 million against consensus draw,” Axi chief market strategist Stephen Innes said in a note to clients, Reuters reported.
Elsewhere, the Biden administration has committed to curb carbon emissions and among his first actions as president, Biden announced America’s return to the Paris climate accord and revoked a permit for the Keystone XL oil pipeline project from Canada.
The administration is also committed to ending new oil and gas leasing on federal lands, Biden’s press secretary said, although Biden has not laid out a timeline for achieving that goal.
