Oil prices retreat after hitting highest level since 2014
(MENAFN- Baystreet.ca) Oil prices retreat after reaching their highest level since 2014
Oil prices fell alongside other commodities after hitting their highest level since 2014.
Oil futures in New York fell more than 3% before paring some losses to trade near US$84 a barrel on a slide in stocks and commodities.
Adding to the bearish sentiment, US government data points to the first gain in crude inventories in eight weeks and comments from the White House that this may accelerate the release of strategic oil reserves.
The International Energy Agency (IEA) said this week that the oil market appeared tighter than previously thought, with demand proving resilient despite the rapid spread of the Omicron variant of COVID-19.
Earlier this week, investment bank Morgan Stanley (MS) joined Goldman Sachs (GS) in forecasting US$100 worth of oil later this year.
West Texas Intermediate crude oil for March fell 1.4% to US$84.38 a barrel on the New York Mercantile Exchange after falling 3.2% yesterday (20 Jan). Brent crude oil for March settlement slipped 1.2% to US$87.34 a barrel.
U.S. crude oil inventories rose 515,000 barrels last week, according to the Energy Information Administration. Gasoline inventories rose 5.87 million barrels, versus a gain of 2.6 million barrels forecast in the survey.
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