Oil continues its losses as US fuel inventories rise

Oil prices suffered losses on Thursday, continuing the losses they began the day before, amid a significant rise in US fuel stocks last week, but concerns about shrinking supplies by OPEC members and Russia limited the decline. Markets move

Brent crude futures fell 28 cents, or 0.4 percent, to $75.88 per barrel, by 0125 GMT, and US West Texas Intermediate crude futures fell 30 cents, or 0.4 percent, to $73.02, according to Reuters data.

The two benchmarks lost more than 1 percent on Wednesday, under pressure from the rise in the dollar and a larger-than-expected increase in US fuel inventories.

The US Energy Information Administration reported on Wednesday that gasoline stocks increased by 6.3 million barrels last week to 237.7 million barrels. Analysts polled by Reuters had expected an increase of 1.5 million barrels. Distillate stocks rose by 6.1 million barrels in the week to 128.9 million barrels, compared to expectations for a rise of 600 thousand barrels.

But crude inventories fell by 959 thousand barrels in the week, compared to analysts’ expectations of a decrease of 184 thousand barrels.

“Growing fuel inventories in the United States triggered some selling, but the downside remains limited due to the winter demand season in the Northern Hemisphere,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.

A Reuters survey showed that OPEC production fell in December, after two months of rise.

In Russia, oil production averaged 8.971 million barrels per day in December, which is lower than the country’s target, according to Bloomberg News.