Crude oil prices dip 1.5pc over increase in inventories

Crude oil prices came down on Wednesday after an increase in fuel inventories last week in the United States. At 1320 hours GMT, Brent, the international benchmark for twothirds of the world's oil, shed $1.30 (-1.50 percent) to reach $85.10 a barrel. Similarly, the US West Texas Intermediate (WTI) reached $83.32 a barrel, down by $1.31 (-1.55 percent), its highest level since 2014. The price for Opec Basket was recorded at $83.42 a barrel with a 0.07 percent increase, Arab Light was available at $84.04 a barrel with a 0.37 percent decrease, while the price of Russian Sokol slipped to $86.41 after shedding 0.40 percent. The American Petroleum Institute (API) on late Tuesday reported a 2.32 million-barrel build in US commercial crude oil stockpiles last week, running against expectations for a 100,000-barrel draw. Gasoline inventories meanwhile rose by 530,000 barrels, while distillate stocks climbed by 986,000 barrels. Nonetheless, crude oil prices have posted gains for the past nine weeks, with the Relative Strength Index on a daily chart for the NYMEX contract showing oil prices sitting squarely in overbought territory. Analysts have said that at current levels, oil prices were due for some profit-taking. The longer-term narrative, however, remained bullish. With a persistent supply deficit and the ongoing energy crisis not going away soon, oil prices still have room to climb, analysts said. The energy crisis could maintain a bullish momentum in crude for the coming days and weeks, interrupted by small pullbacks, they added. They added the bottom line is that the bullish narrative has taken a strong hold and despite a fair amount of speculative froth in crude, there is nothing on the horizon so far to trigger a correction.