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Crude Prices Drop As Gasoline Stockpiles Rise

Crude oil prices have declined in Thursday's trade after a large increase in gasoline stockpiles renewed fears of an Omicron-induced demand taper. The decline in crude oil prices is despite a large drop in crude oil inventories in the U.S. in the preceding week.

Recent data released by the U.S. Energy Information Administration revealed that the US crude oil inventories had fallen by 4.553 million barrels in the week ended January 7th. Markets had factored in a 1.904 million drop for the same period.

The EIA report also showed that Gasoline inventories were up by 7.961 million barrels during the same period, far more than the expected increase of 2.408 million barrels.

Earlier the American Petroleum Institute had indicated the decrease in stocks of crude oil for the week ended January 7th as 1.077 million barrels, versus market expectations of 1.950 million decease.

Both the reports showed that it was the 7th week of consecutive declines in the crude oil inventories in the U.S.

Brent crude for March settlement on Thursday traded between a high of $85.02 and a low of $84.18.

It is currently trading at $84.43, down 0.28 percent from Wednesday's close of $84.67.

Likewise, West Texas Intermediate crude for February settlement traded between a high of $82.94 and $82.16.

It is currently trading at $82.26, having dropped 0.46 percent from Wednesday's close of $82.64.

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