UNITED STATES (OBSERVATORY) – Oil prices fell on Wednesday from a three-year high of the previous session as the market was hit by an increase in fuel stocks and production in the United States.
Brent crude futures were $ 73.71 a barrel at 0655 GMT, down 15 cents, or 0.2 percent, from the previous settlement, down about $ 1.8 from the November high of $ 75.47 a barrel in the previous session.
US WTI crude futures fell 12 cents, or 0.2 percent, to $ 67.58 a barrel, well below the high of $ 69.56 a barrel at the end of 2014, which hit early April.
Traders attributed the price drop on Wednesday to profit-taking after Tuesday’s high levels, but many analysts said the supply-overs period beginning in 2014 was now over due to supply disruptions and demand strength.
This was caused by OPEC-led production cuts that began in 2017 to support the market as well as the impact of political unrest on supplies from the Middle East, Venezuela and Africa.
US crude inventories rose 1.1 million barrels in the week ending April 20 to 429.1 million barrels, according to a report by the US Petroleum Institute on Tuesday.
The US Energy Information Administration publishes weekly data on fuel stocks and crude production in the United States on Wednesday.