RIYADH: Oil prices eased on Tuesday, reversing earlier gains, as US consumer prices unexpectedly rose in August, giving cover for the US Federal Reserve to deliver another hefty interest rate increase next week.
Brent crude was down 80 cents, or 0.9 percent, to $93.20 a barrel at 1254 GMT, while WTI crude fell 77 cents, or 0.9 percent, to $87.01 a barrel.
The consumer price index gained 0.1 percent last month after being unchanged in July, the US Labor Department said on Tuesday. Economists polled by Reuters had forecast a 0.1 percent fall.
Fed officials are set to meet next Tuesday and Wednesday, with inflation way above the US central bank’s 2 percent target.
COVID-19 curbs in China, the world’s second-largest oil consumer, renewed concerns about lower global fuel demand.
The number of journeys taken during the country’s three-day mid-Autumn festival dropped by more than a third compared with last year, a state media report said on Monday, as the country’s zero-COVID policy discouraged people from traveling.
US emergency oil reserves tumble to lowest since 1984
US emergency crude oil stocks fell 8.4 million barrels last week to 434.1 million barrels, their lowest since October 1984, according to US Department of Energy data released on Monday.
The release from the Strategic Petroleum Reserve in the week ended Sept. 9 was the steepest draw since May. It comprised about 6.3 million barrels of sweet crude and around 2 million barrels of sour crude.
The DOE has proposed to replenish the SPR by allowing it to enter contracts to purchase oil in future years at fixed, preset prices. The administration said it believes the plan would help boost domestic oil production.
Tullow Oil to delist from Euronext Dublin bourse
Africa-focused Tullow Oil said it would exit Ireland’s Euronext Dublin bourse on or around Oct. 10 to cut costs.
“It is anticipated the delisting will simplify compliance and regulatory obligations of Tullow and is in line with an overall objective to reduce central costs and its purpose,” the company said in a statement.
Tullow Oil said it would continue to be listed on the London Stock Exchange and the Ghana Stock Exchange.
The company last month said it would abandon its drilling operations at an exploration well in offshore Guyana after results showed it bore water, marking another disappointment for companies drilling offshore the Caribbean nation.
(With input from Reuters)
