Oil prices dipped on Friday, weighed down by an unexpected increase in crude and fuel stocks in the United States, as speculators took profits after global benchmarks hit seven-year highs this week.
By 1214 GMT, Brent crude futures were down $1.55, or 1.7 percent, at $86.83 a barrel. The contract had previously fallen by as much as 3 percent, the biggest since December 20. The worldwide benchmark had hit a seven-year high of $89.50 the day before.
WTI crude futures in the United States fell $1.62, or 1.8 percent, to $83.93. After climbing to its highest level since October 2014 on Wednesday, the contract had dropped as much as 3.2 percent, the most since December 20.
Brent and WTI concluded the trading day with little losses on Thursday, but both benchmarks have risen more than 10 percent this year and are on track for a fifth straight weekly gain.
“The recent dip is most likely due to pre-weekend profit-taking and the lack of new positive catalysts,” said PVM analyst Stephen Brennock, citing gloomy data from the Energy Information Administration (EIA).
Against industry predictions, the EIA revealed that the first US stockbuild since November, with gasoline stockpiles at an 11-month high.
The EIA also noted a modest drop in refinery runs, implying reduced crude demand.
Analysts predict pricing pressure to be minimal as a result of supply worries and increased demand.
The Organization of Petroleum Exporting Countries (OPEC+), which includes Russia and other producers, is struggling to meet its monthly output growth target of 400,000 barrels per day (bpd).
Tensions in Eastern Europe and the Middle East are also causing supply disruption fears.
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