Oil prices fell for a second day in a row, Friday, under pressure from an unexpected increase in US crude and fuel stocks, while investors took profits from the price hike to a seven-year high earlier in the week.
Nevertheless, the benchmark rose for the fifth week in a row, to achieve about 2% this week. Prices have risen more than 10% since the beginning of the year amid fears of tight supplies.
Brent crude futures fell 49 cents, or 0.6%, to settle at $87.89 a barrel, while West Texas Intermediate crude fell 41 cents, or 0.5%, to settle at $85.14 a barrel.
Earlier in the week, both Brent and West Texas Intermediate rose to their respective highest levels since October 2014.
“The recent decline is likely due to a combination of profit taking before the weekend and the absence of catalysts for optimism,” said Stephen Brennock, analyst at BVM. Pessimistic data yesterday from the US Energy Information Administration.
Other analysts also said they expect the current pressure on prices to be limited due to supply concerns and rising demand.
However, the International Energy Agency said on Wednesday that oil supply is expected to exceed demand soon, as some producers are expected to pump at or above all-time highs, while demand holds up despite the spread of the mutant Omicron from the Corona virus.