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Oil Rally Pauses With Fuel Buildup Dimming Tighter Crude Supply

  • Domestic crude stocks fell by over 3 million barrels last week
  • Refined product builds and stronger dollar weigh on prices
An oil pumping jack, also known as a "nodding donkey", in an oilfield near Neftekamsk, in the Republic of Bashkortostan, Russia, on Thursday, Nov. 19, 2020. 

An oil pumping jack, also known as a "nodding donkey", in an oilfield near Neftekamsk, in the Republic of Bashkortostan, Russia, on Thursday, Nov. 19, 2020. 

Photographer: Andrey Rudakov/Bloomberg
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Oil’s red-hot rally took a breather as a stronger dollar and rising refined products supplies offset shrinking U.S. crude inventories, capping the price under a key technical indicator.

Futures in New York ended a sixth-day winning streak with a 0.6% decline on Wednesday, holding beneath their upper Bollinger band. Crude settled the previous session above the technical indicator, a sign the rally was due for a pullback. While an Energy Information Administration report showed U.S. crude inventories fell by over 3 million barrels last week for a fifth drop in a row, the report also showed builds across gasoline and distillate stockpiles.