Oil falls on rising US stockpiles, but is cushioned by supply concerns

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Oil falls on rising US stockpiles, but is cushioned by supply concerns
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US crude inventories rose by about 4.5m barrels in the week ended October 21, higher than analysts’ expectations

Singapore — Oil prices eased on Wednesday after industry data showed US crude stockpiles rose more than expected, but losses were capped by supply worries.

“The prospect of a global economic slowdown and tighter monetary policy has been outweighing the spectre of supply reductions in recent weeks,” ANZ Research analysts said in a note. While a rise in crude stockpiles reinforced fears of a global recession that would cut demand, ongoing supply constraints kept prices trading in a narrow range.

Biden announced a plan last week to sell off the rest of a record release from the nation’s emergency oil reserve by year end as he tries to dampen high gasoline prices.

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