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Oil Succumbs to One-Two Punch From US Oil Release and Inflation

  • WTI settles near $79 as market digests news of more SPR oil
  • US consumer price growth remains elevated in January
Updated on

Oil extended losses that began after Monday’s close with the announcement that the US was selling more crude from its strategic reserves, with a higher-than-expected inflation figure adding pressure. 

The Strategic Petroleum Reserve will fall to its lowest level in over 40 years as a result of the administration’s decision to move forward with a congressionally mandated sale of 26 million barrels of crude. West Texas Intermediate settled near $79 a barrel, slipping on the day but clawing back from over a 3% drop early in the session after data showed consumer prices rose the most in three months.