Oil Holds Biggest Loss in a Week as US Product Stockpiles Swell

(Bloomberg) — Oil held the biggest decline in a week after US fuel inventories rose, while investors monitor the fallout from sanctions on two major Russian producers that are scheduled to take effect on Friday.

West Texas Intermediate’s January contract traded above $59 a barrel after retreating more than 2% on Wednesday. Brent closed below $64. Gasoline and distillate stockpiles — a category that includes diesel — climbed for the first time in over a month last week, according to government data.

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US crude stockpiles declined by 3.4 million barrels, figures from the Energy Information Administration show, but that volume was lower than the expected gain of 4.4 million barrels flagged by an industry group a day prior.

Oil is down this year on expectations for a large surplus, though geopolitical tensions are adding some risk premium to prices. US sanctions on Russian giants Rosneft PJSC and Lukoil PJSC are due to start Nov. 21, and the looming penalties have already upended crude flows, most notably to India.

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