Oil erases gains as US fuel inventory rises

Oil drilling rigs

Oil prices erased early gains today, Jan. 8, as markets assessed US data showing crude inventories fell for a seventh straight week while fuel stockpiles rose sharply. Brent crude futures for March delivery lost 1.15%, or 89 cents, to close at $76.16 a barrel, after touching $77.89.

WTI crude futures for February delivery fell 1.25%, or 93 cents, to $73.32 a barrel, after rising to $75.29.

The Energy Information Administration data revealed that US crude inventories fell by one million barrels during the week ended Jan. 3, with gasoline and distillate inventories jumping by 6.3 million and 6.1 million barrels, respectively.

“Crude oil prices fell in response to a stronger dollar after news reports that Trump is considering declaring a national economic emergency to provide a legal basis for sweeping tariffs,” Ole Hansen, Analyst at Saxo Bank, said in a note.