Oil gives up 6-week high on profit taking

Oil prices fell on Thursday, and gave up a 6-week high on profit-taking, while on track for the first loss in 5 days, but oil's losses are being curbed after data showed a large drop in the US crude inventories.

US crude fell 0.4% to $72.36 barrel, after opening at $72.63, and hit a high at $72.97, and Brent crude fell more than 0.2% to $75.24 a barrel, after opening at $75.40, and hit a high at $75.86.

The US crude gained 2.6% yesterday, the fourth daily gain in a row, and hit a 6-week high at $73.11, and Brent rose 2.1%, and hit the highest since July 29 at $76.10.

The Energy Information Administration reported yesterday that the US crude inventories fell 6.4 million barrels, during the week ending September 10, while analysts forecasts a drop by 3.6 million barrels.

The total commercial inventories fell to the lowest level since the week ending on September 6, 2019 at 417.48 million barrels, in a positive sign of the US demand levels.

While the US output rose 100,000 barrels last week, with the total at 10.1 million barrels per day, a less-than-expected rise, as producers in the Gulf of Mexico are still suffering from Hurricane Ida's damages.