SINGAPORE (Reuters) – Oil prices fell on Thursday, picking up some strong gains recently, although losses have been offset by production cuts and the hope that vaccine distribution will drive up demand.
Brent crude fell 39 cents, or 0.6%, to $ 61.08 a barrel, as of 0231 GMT, after touching its highest level since January 2020 on Wednesday. U.S. crude slipped 35 cents, or 0.6%, to $ 58.33 a barrel.
“Crude oil futures were built after a larger-than-expected fall in U.S. investments,” ANZ said in a note. “However, sentiment was reduced by an increase in gasoline deposits.”
Crude stocks fell last week for the third straight week, falling 6.6 million barrels to 469 million barrels, the lowest level since March, according to the Energy Information Administration. Analysts in a Reuters poll had forecast a 985,000-barrel increase.
Brent has gone up for the previous nine sessions, the longest period he has earned since January 2019. On Wednesday, it was the eighth daily increase for U.S. crude.
However, some analysts say prices have moved too far ahead of the fundamentals.
Stocks were flat in early Asian trading on Thursday as investors cracked the brakes continued to run in asset prices after absorbing tight U.S. inflation data and confirming comments from the head of the Federal Reserve the prospect of a slow recovery.
Crude has jumped since November when governments suspended vaccination campaigns for COVID-19 while implementing major stimulus packages to stimulate economic activity, and major world representatives kept supplies on top.
Saudi Arabia’s major exports are reducing supplies unilaterally in February and March, adding to cuts agreed with other members of the Organization of the Petroleum Exporting Countries (OPEC) and allies, known as OPEC +.
Reciting with Naveen Thukral; Edited by Michael Perry