Oil gives up multi-year highs on profit taking

Oil prices fell on Wednesday, and pulled back from multi-year highs on profit-taking, amid global demand concerns after the IMF slashed its economic growth forecast for most major economies, in addition to expected hike in the US crude inventories for the third straight week.

US crude fell 0.8% to $79.91 a barrel, after opening at $80.57, and hit a low at $80.76, and Brent crude fell 0.5% to $82.68 a barrel, after opening at $83.08, and hit a low at $83.56.

The US crude gained 0.1% yesterday, in the fourth straight daily gain, after it hit a 7-year high at $82.15. 

Brent fell 0.5%, the first daily loss, after it hit the highest since October 2018 at $84.58.

The International Monetary Fund on Tuesday slashed its estimate for economic growth in the US and other major economies, and attributed that to concerns over the new wave of the coronavirus, and expectations it would halt the global economic recovery.

This raised concerns about the global demand for fuel during the last quarter of 2021, and about the widening supply deficit.

The American Petroleum Institute will release its preliminary report on the US crude inventories later today, and the US Energy Information Administration will release the official data on Wednesday.