SULAIMANI (ESTA) — Oil prices fell on Wednesday, taking a breather after a strong rally this week spurred by the loss of a quarter of Mexico’s production and signs that Chia has curbed a recent coronavirus outbreak.
Brent crude futures dripped 14 cents to $70.91 a barrel by 0731 GMT, while U.S. West Intermediate (WTI) crude futures dropped by 23 cents to $67.31 per barrel.
Both benchmark contracts rose by about 8% over the previous two days, erasing most of the slump from a seven-day losing streak, according to Reuters.
“A second consecutive day of price rally in the crude market had also spurred some profit-taking, while American Petroleum Institute data showing a less-than-expected decline in U.S. oil inventories last week added to the downward pressure,” Reuters quoted Vandana Hari as saying.
Reuters reported that prices had rallied following a more than 400,000 barrels per day drop in supply in Mexico after a fire on an oil platform.
American Petroleum Institute data showed crude inventories fell 1.6 million barrels for the week ended Aug. 20, while gasoline stockpiles fell 1 million barrels, according to sources, who spoke to Reuters on condition of anonymity.
