Oil Up, but Inflation Concerns Cap Gains -Breaking
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By Gina Lee
Investing.com – Oil was up Thursday morning in Asia. In the U.S., rising energy prices could cause more crude oil stockpiles to be released to lower prices.
They were up 0.2% to $82.83 at 10:37 ET (03:37 GMT), and up 0.2% to $81.55.
Both Brent and WTI futures fell on Wednesday after Wednesday’s data showed that U.S. inflation increased at the fastest rate in 30 years. Consumer price index rose 6.2% and 0.9%, respectively. Core CPI saw a 4.6% increase and 0.6% rise in October.
Joe Biden, the U.S. president has asked that both the National Economic Council and the Federal Trade Commission find ways of reducing energy costs. They also request that they push back against market manipulation in order to stop inflation. They could also release more U.S. Strategic Petroleum Reserve supplies.
“The U.S. increased pressure on the oil markets with President Biden asking economic advisers to look at ways to lower prices,” ANZ Bank analysts stated in a note.
It is becoming more likely that the U.S. could coordinate stock releases with Japan and other nations.
The U.S. Energy Information Administration, (EIA), reported Wednesday that gasoline inventories and distillates such as diesel continued to decline. In the week ending Nov. 5, there was a 1.001million barrels build. Investing.com’s forecasts for the week to Nov. 5 predicted a build in barrels of 1.001 million. However, a build reported by Investing.com was 3.291 million barrels.
Released the day prior, it showed a draw at 2.485 millions barrels.
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