Oil prices on Thursday on a steady level retreating from decline in previous session due to U.S. inflation number coming in higher than expected.
During Wednesday’s session Brent crude oil fell by 2.5% and WTI dropped by 3.3% due to market’s expectation on the possibility of releasing more reserves to cool down energy prices in order to tame inflation.
The inflation numbers pushed the dollar to strengthen further as the White House and the Federal Reserves could hike interest rate and implement tighter monetary policy to curve inflation. Dollar and crude oil typically have a negative correlation.
The Energy Information Administration on Wednesday said, U.S. crude oil rose last week with injection of inventories from Strategic Petroleum Reserves. However, inventories of gasoline and diesel declined.
In the week of November 5, crude oil inventories rose by 1 million barrels against forecasted 2.1 million barrels.