Oil prices fell by more than 1% on Wednesday due to a stronger dollar and a significant increase in U.S. fuel inventories, reversing earlier gains driven by reduced supplies from Russia and other OPEC members. Brent crude dropped 89 cents to $76.23 a barrel, while U.S. West Texas Intermediate crude decreased by 93 cents to $73.32.
The rise in fuel stocks, particularly gasoline and diesel, weighed on the market as refiners ramped up production.
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Gasoline inventories rose by 6.3 million barrels, much higher than the expected 1.5 million-barrel build, and distillate stocks increased by 6.1 million barrels, exceeding the expected 600,000-barrel rise.
Although crude inventories fell by 959,000 barrels, concerns about further product stock builds in the coming weeks remain. A stronger dollar also pressured oil prices, making crude more expensive for holders of other currencies.
Despite these challenges, OPEC’s output fell in December, and Russia’s oil production remained below target. Analysts expect oil prices to decrease in 2025 compared to 2024 due to increased production from non-OPEC countries.
