Crude oil dips to 4-week low on rising US stockpiles

November 04, 2021 12:25 PM AEDT | By Arpit Verma

Crude oil dips to 4-week low on rising US stockpiles — Image source: Falling oil prices | Source: © Designer491 | Megapixl.com

Rising US stocks

Weekly crude stocks rose by 3.3 million barrels, however, gasoline stockpiles dipped to their lowest level since November 2017.

As per the expectations, the US Federal Reserve also stated that it will start tapering asset purchases from this month, sapping some speculative buying in risk assets including crude oil.

Crude oil stocks

Crude oil stocks | Source: © Batareykin | Megapixl.com

Oil-consuming nations around the globe have pressurized OPEC+ to increase its supply to cool down the heated oil prices. However, the group sticks to its original strategy of increasing the output gradually to phase out the ongoing production cuts.

Apart from this, the US President, Joe Biden blamed the refusal of OPEC nations to pump more crude, as one of the reasons for surging oil prices.

Bottom Line

Crude oil prices surged magnificently in the current year on the back of a strong recovery in demand after an ease in pandemics. The most recent drops in crude oil prices are underpinned by rising inventories in the US.

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