Oil falls on sudden build in U.S. crude stockpile
Oil prices dropped on Wednesday as industry data showed a sudden build in U.S. crude stocks last week after a deep freeze in Texas hit output.
Crude inventories climbed by 1 million barrels in the week ended Feb. 19, contrary to analysts’ estimates for a 5.2 million-barrel drawdown.
U.S. West Texas Intermediate crude futures dropped 0.9%, or 56 cents, at $61.11 per barrel following a 3-cent fall on Tuesday.
Brent crude futures were down 0.5%, or 35 cents, at $65.02 per barrel. Analysts forecast the Brent to rise into the $66.45-$66.97 range, considering its wave pattern and projection.
Oil prices are retreating after Brent and WTI rallied for over 26% to 13-month highs. Prices rose due to a disruption in U.S. supply and the output cuts implemented by OPEC and its allies. This included the 1 million bpd cut pledged by Saudi Arabia.