Oil dips on forecast of mild U.S. winter spurs retreat from multi-year highs
Oil tumbled $2 on Thursday as a forecast for a warm U.S. winter put the breaks on a rally that drove prices to a three-year high above $86 a barrel early in the session on tight supply and a global energy crunch.
Winter weather in much of the United States is expected to be warmer than average, according to a National Oceanic and Atmospheric Administration released Thursday morning.
Brent crude dipped 1.41%, or $1.21, to settle at $84.61 per barrel, after reaching a session high of $86.10, highest since October 2018. U.S. West Texas Intermediate crude settled 92 cents, or 1.1%, lower at $82.50 per barrel.
Prices had rallied on Wednesday when the U.S. Energy Information Administration reported tighter crude and fuel inventories, with crude stocks at the Cushing, Oklahoma storage hub falling to a three-year low.
Reference: CNBC
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