Oil slumps 3% after US inventory data, Brent below $78

Oil drilling rigs

Oil closed lower today, Dec. 7, as US gasoline inventories rose and amid heightened concerns about global demand outlook.

US Energy Information Administration data showed that crude oil inventories fell by 5.2 million barrels in the week ended Dec. 2, higher than expectations for a drop of $3.5 million.

Gasoline stocks rose by 5.3 million barrels and distillate stocks edged up 6.2 million barrels.

Meanwhile, Russia is considering setting a minimum price for crude in international sales, in response to the Group of Seven decision to impose a ceiling on the price.

Oil was volatile today, with China easing restrictions related to COVID-19 on the one hand, and the decline in Chinese exports to the lowest level since April with weak global demand on the other hand.

Brent crude futures for February delivery fell 2.7%, or $2.18, to $77.17 a barrel. WTI crude for January delivery declined 3%, or $2.24, to reach $72.01 a barrel.