Oil Futures Settle Lower On Inventory Build, Stronger Dollar

Crude oil prices drifted lower on Thursday, falling for a third successive session, after data showed a sharp jump in U.S. crude inventories in the week ended September 7th.

Oil prices pared gains as the dollar rose after hot consumer price inflation report suggested the Fed might not be done raising rates.

West Texas Intermediate Crude oil futures for November ended lower by $0.58 or about 0.7% at $82.91 a barrel.

Brent crude futures settled at $86.00 a barrel, up $0.18 or about 0.2%, after having rallied to $88.26 a barrl earlier in the day.

Data from the Energy Information Administration (EIA) showed crude inventory in the U.S. rose by 10.176 million barrels in the week to October 6, the largest weekly rise since mid-February.

Gasoline stockpiles fell by 1.313 million barrels last week, while distillate inventories dropped by 1.837 million barrels.

The EIA data also showed a 0.319 million barrel drop in storage levels at the Cushing, Oklahomo delivery point.

The International Energy Agency said in its latest monthly oil market report oil markets would “remain on tenterhooks” due to the conflict in the Middle East. “The Middle East conflict is fraught with uncertainty and events are fast developing,” the IEA said its the report.

“Against a backdrop of tightly balanced oil markets anticipated by the IEA for some time, the international community will remain laser focused on risks to the region’s oil flows.”

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