Oil Dips After Buildup in Oil Inventories

Oil prices fell following larger than expected increases in crude oil stockpiles and fuel inventories in the U.S.

Brent oil futures fell 0.76% to $85.01 WTI Futures fell 0.79% to $83.98 by 10:16 PM ET (2:16 AM GMT).

American Petroleum Institute figures showed that crude oil inventories rose 2.3 million barrels in the week ending Oct. 22, surpassing the anticipated 1.9 million-barrel gain. Gasoline inventories also rose by 500,000 barrels and distillate stocks increased by 1 million barrels, when both were expected to drop.

With Brent rising the past eight weeks and WTI climbing for the past 10 weeks, analysts feel prices are starting to look overbought.

“Barring more bullish headlines, which is possible considering what we saw yesterday, we could see some profit-taking in Brent and WTI which would be healthy for the market,” said Craig Erlam, senior market analyst at OANDA.