Crude oil fell on Thursday as expectations of a less severe winter in the US halted a rally that pushed prices to a three-year high above $86 a barrel earlier in the session due to tight supplies and the global energy crisis.
Winters across much of the United States are expected to be less cold than average, according to an assessment by the National Oceanic and Atmospheric Administration, released Thursday morning.
“The report, which indicates drier and warmer conditions in the southern and eastern United States, is putting pressure on the complex,” said Bob Yoger, director of energy futures at Mizuho.
Brent crude fell $1.21 to $84.61 after hitting a session high of $86.10, which is also the highest since October 2018. US crude closed down $0.92 to $82.50.
Prices rose on Wednesday when the US Energy Information Administration reported a tightening of oil and fuel stocks, with stocks in Cushing, Oklahoma, the storage hub, falling to their lowest level in three years. [EIA/S]
Brent prices have risen sharply by more than 60% this year, buoyed by a slow increase in supplies by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, and the global coal and gas crisis, which has led to power generators. to switch to oil.
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