The price of crude oil fell, snapping three days of gains, on concern an increase in stockpiles in the US shows that fuel demand has yet to recover.
Oil slipped to less than $80 a barrel as inventories at Cushing, Oklahoma, where New York-traded West Texas Intermediate grade is stored, rose for the third time in four weeks, reported Bloomberg.
The oil price also dropped before a report from the US Labor Department, which is forecast to show that unemployment in the world’s biggest energy user rose in October.
Crude oil for December delivery fell as much as $0.78, or 1%, to $79.62 a barrel on the New York Mercantile Exchange.
It was at $79.88 a barrel at 4.07pm Singapore time. Yesterday, the contract rose $0.80, or 1%, to settle at $80.40 a barrel, the highest since 23 October. Futures have gained 79% this year, according to Bloomberg.
Oil climbed to a one-week high yesterday after a report from the Department of Energy showed total crude supplies unexpectedly declined.
Inventories fell 3.94 million barrels last week, the report said. A 1.5 million-barrel increase was forecast, according to a Bloomberg News survey of analysts.