Oil prices fall after US crude inventories jump by six million barrels
Oil prices continued to fall yesterday after US crude inventories rose more than expected.
Brent crude oil slid to $79.75 as the price drop kickstarted by last week’s global equity sell off spilled over for another day.
Prices had rallied briefly on data suggesting US crude stockpiles had dropped last week but government data showing inventories rose by 6.5m barrel last week put an end to the recovery.
Read more: Factors beyond the control of oil producers causing price rise, Opec says
The rise, reported by the US Energy Information Administration was almost triple what analysts had forecast and further eased prices, which had hit four-year highs of $86.74 earlier this month.
Gasoline stocks dropped by 2m barrels the EIA data also showed.
Diplomatic tensions surrounding the disappearance of journalist Jamal Khashoggi and fears Saudi Arabia could cut off its oil supply in retaliation had helped raise prices earlier this week.
Read more: Oil bankers form advisory firm as price surge fuels deals
Fresh US sanctions on Iran, set to come into force on 4 November, also boosted prices.