Oil Drops as U.S. Fuel Stocks Grow and OPEC+ Nears Deal
- Gasoline and distillate inventories both increased last week
- Saudi Arabia and UAE said to reach compromise on supply deal
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Oil’s rally fizzled as a build in U.S. fuel inventories and a potential OPEC+ agreement to increase supply cooled a buying spree that had pushed the market above $75.
Futures in New York fell 2.8%, the most since May. Both gasoline and distillate inventories rose last week, according to a U.S. government report. Meanwhile, Saudi Arabia and the United Arab Emirates were said to resolve the standoff that has prevented OPEC+ from satisfying growing demand for extra barrels. Technical indicators also showed crude close to overbought territory earlier Wednesday, which signals oil may be due for a pullback.