MELBOURNE (Reuters) – Oil prices fell Thursday after data showed U.S. crude stocks rose unexpectedly last week, sparking concerns about loose restrictions cutting into fuel demand.
U.S. West Texas Intermediate (WTI) crude futures fell 27 cents, or 0.5%, to $ 53.04 a barrel at 0147 GMT, after a two-day win over hopes of major COVID-19 relief spending under the new U.S. President Joe Biden.
Brent crude futures fell 26 cents, or 0.5%, to $ 55.82 a barrel.
U.S. crude oil deposits rose 2.6 million barrels per week to Jan. 15, according to data from the American Petroleum Institute, an industry group, compared to analysts ’predictions in a Reuters poll for a fall of 1.2 million barrel. [API/S]
“Oil prices look vulnerable to potentially profitable after U.S. crude stocks rose 2.56 million against a consensus pull,” said Axi chief market strategist Stephen Innes. in a note to clients.
But gasoline stocks and distillate deposits, which include diesel, distillate and jet fuels, rose less than analysts expected.
The U.S. Energy Information Administration plans to publish its weekly investment report on Friday.
Axi’s Innes said COVID’s restrictions on movement hurt the near-term outlook for oil demand, although traders had been looking beyond that in hopes of a vaccine release that would ease locks.
“At the same time, China’s near-term crude demand forecast looks high and tends to revise lower as locks in the country unfold ahead of the Lunar New Year,” he said.
The Biden administration has vowed to ban carbon emissions and among his first acts as president, Biden announced that America had returned to the Paris climate treaty and revoked approval for an oil pipeline project Keystone XL à Canada.
The administration is also committed to ending new oil and gas leases on federal territory, Biden’s press secretary said, although Biden has not set a timeline for achieving that goal.
Reciting with Sonali Paul; Edited by Shri Navaratnam