Oil’s bumper rally cooled after an increase in U.S. crude inventories and as industrial commodities retreated.
Brent for December settlement fell 1.4 per cent to $85.21/bbl at 10:29 a.m. in London. WTI for December delivery dipped 1.7 per cent to $83.19/bbl.
The American Petroleum Institute reported crude stockpiles rose 2.32 million bbls, while gasoline and distillate supplies also edged up. Crude was lower with most other commodity markets.
Although U.S. crude inventories rose, the volume at the storage hub of Cushing fell by about 3.73 million, according to people familiar with the data. It would be the biggest decline since January if replicated in official figures released later Wednesday.
There’s particular concern about the slumping volume at Cushing, which is the delivery point for U.S. crude futures and one of the largest storage hubs in the world. As demand has rebounded this year, holdings at the site have sunk to the lowest since 2018, with traders now fretting that inventories could hit minimum operating levels, supporting higher prices and wider time spreads.
© 2021 Bloomberg L.P.