Oil Retreats as U.S. Reports Significant Increase in Crude Inventory

Oil prices fluctuated significantly on Thursday, due to a significant surge in U.S. crude stockpiles. The price increases surpassed expectations, offsetting the initial optimism surrounding the stabilization of U.S. interest rates.

Prices dropped when U.S. government data revealed that crude oil supplies in the U.S. increased by 10.2 million barrels last week, reaching a total of 424.2 million barrels. This was way more than analysts had predicted, which was just a 500,000-barrel rise.

Recent data indicated a slowdown in U.S. inflation, making it likely that the Federal Reserve will not increase interest rates next month. This, combined with lower U.S. bond yields, has increased investors' appetite for risk, supporting the stock market and oil prices.

Brent futures settled up 18 cents to $86.00 per barrel.

U.S. West Texas Intermediate crude fell 58 cents to $82.91 a barrel.