Oil prices decline on US supply concerns

Global oil prices fell in European trade off week highs as the dollar weakened, on track for the first loss in four days on profit-taking.

Concerns are growing as well about US oversupply after commercial crude stocks rose for the sixth straight session while US oil output hit three-year highs. 

Global Oil Prices

US crude fell 1% to $77.65 a barrel, with a week high at $78.80, while Brent shed 0.8% to $84.34 a barrel. 

US crude rose 1.2% on Wednesday, while Brent added 1.1%, the third profit in a row. 

US Crude Stocks 

The Energy Information Administration reported a buildup of 2.4 million barrels in US crude stocks in the week ending February 3, the sixth weekly increase in a row, passing estimates of a 2 million barrels buildup. 

Total stocks are up to 455.1 million barrels, the highest since the week ending June 2021, and a negative sign for demand in the US.

US Output

The EIA also reported an increase of 100 thousand bpd in US production to a total of 12.3 million bpd, the highest since April 2020.