Oil falls 1% as geopolitical concerns ease

Oil drilling rigs

Oil prices settled lower today, Nov. 16, as concerns about geopolitical tensions in Europe subsided and following the release of the US inventories report.

A state of anticipation dominated the oil market today, after two people were killed in Poland after a missile hit a village near the Ukrainian border, but several officials in Poland and the United States indicated that the accident was unlikely to be intentional.

US Energy Information Administration data revealed that oil inventories fell by 5.4 million barrels in the week ended Nov. 11, exceeding expectations for a decline of two million barrels.

While gasoline stocks rose in the US by 2.2 million barrels, and distillate stocks rose by 1.1 million barrels.

According to media reports, a part of the Druzhba oil pipeline has resumed operations, after it stopped working in the last 24 hours.

Brent crude futures for January delivery saw a decline of 1.05%, or $1, at $92.86 a barrel.

WTI crude for December delivery also fell 1.5%, or $1.33, to record $85.59 a barrel.