Oil prices have dropped alongside other commodities after hitting their highest level since 2014.
Oil futures in New York trading slumped more than 3% before paring some losses to trade near $84 U.S. a barrel following a decline in stocks and raw materials.
Adding to bearish sentiment was U.S. government data pointing to the first gain in crude inventories in eight weeks and comments from the White House that it can accelerate the release of strategic oil reserves.
The International Energy Agency (IEA) this week said that the oil market was looking tighter than previously thought, with demand proving resilient despite the rapid spread of the Omicron variant of COVID-19.
Earlier this week, investment bank Morgan Stanley (MS) joined Goldman Sachs (GS) in forecasting $100 U.S. oil later this year.
West Texas Intermediate crude oil for March lost 1.4% to $84.38 U.S. a barrel on the New York Mercantile Exchange after falling as much as 3.2% yesterday (January 20). Brent crude oil for March settlement slid 1.2% to $87.34 U.S. a barrel.
U.S. crude oil stockpiles expanded by 515,000 barrels last week, according to the Energy Information Administration. Gasoline inventories rose by 5.87 million barrels, compared with a 2.6-million-barrel gain forecast in the survey.
