Oil drops following surprise build

Oil prices dropped on Thursday, extending losses following a surprise build in U.S. inventories. Prices now appear to have stabilized after the recent run of gains.

Brent crude lost 11 cents at $78.53 a barrel by 0137 GMT after shedding 0.6% on Wednesday.  U.S. oil also declined by 5 cents at $74.78 a barrel, having similarly lost 0.6% in the previous session.

Both contracts tilted into higher territory earlier in the session. Following two days of losses, oil bulls may also be searching for the next hurdle to cross after Brent soared above $80 for the first time in three years on Tuesday.

The U.S. Energy Department’s Energy Information Administration (EIA) stated on Wednesday that the country’s oil and fuel stockpile went up in the previous week.

EIA data showed an increase in crude inventories of up to 4.6 million barrels in the week to September 24.

The rise in inventories came as U.S. output returned to around the same level it had before Hurricane Ida hit about a month ago. Output went up to 11.1 million barrels per day in the previous week.