Oil prices fell on Thursday after two days of gains on hops that increased U.S. fiscal spending under the Biden administration to fight the coronavirus pandemic will increase global demand.
Benchmark Brent crude for March settlement dropped 0.8 percent to $55.61 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 0.8 percent at $52.86.
Worries about pandemic restrictions cutting into fuel demand resurfaced after industry data showed an unexpected build in U.S. crude stock last week.
The American Petroleum Institute (API) report showed an unexpected 2.6 million-barrel build in U.S. commercial crude inventories in the week ended Jan. 15, contrary to predictions for a fall of 1.2 million barrels.
However, gasoline stocks and distillate inventories, which include diesel, distillate and jet fuel, rose by less than analysts had expected.
The U.S. Energy Information Administration is due to release its weekly inventory report on Friday.
If delayed EIA numbers tomorrow show a similar crude oil build, it would be the first build seen since early December.
The material has been provided by InstaForex Company – www.instaforex.com