Oil sharpens decline to 3-week trough on US inventory buildup

Global oil prices fell in European trade on Thursday for the second session, plumbing three-week lows after an unexpected rise in US crude stocks. 

The decline comes amid ongoing talks in the EU to put a price ceiling on Russian crude products after delaying the decision yesterday.

Global Oil Prices

US crude fell 1.1% to $75.86 a barrel, the lowest since January 11, while Brent shed 1.05% to $82.10 a barrel, the lowest since January 11.

US crude lost 3% on Wednesday, while Brent gave up 2.9%, the third loss in four days on concerns about Russian supplies.

US Crude Stocks

The Energy Information Administration reported a buildup of 4.1 million barrels last week to 452.7 million barrels, while analysts expected a drop of a million barrels.

Gasoline stocks rose 2.6 million barrels to 234.6 million barrels, while distillate stocks rose 2.3 million barrels to 117.6 million barrels.

Price Ceiling

Diplomats said the EU is seeking a deal on Friday to put a price ceiling on Russian crude prices after a delay yesterday. 

The European Commission suggested yesterday a ceiling of $100 a barrel on premium products such as diesel, and $45 a barrel on products such as gasoline oil.