2020.11.2608:21:00UTC+00Oil Prices Fall On Profit Taking

The oil price rally stalled on Thursday despite data showing an unexpected fall in U.S. crude stockpiles last week.

Benchmark Brent crude fell 2.1 percent to $47.52 a barrel, after having risen about 1.6 percent on Wednesday. West Texas Intermediate crude futures were down 1.7 percent at $44.94.

It appears that traders are booking profits after recent strong gains on the back of optimism over Joe Biden's victory in the U.S. presidential race and progress toward Covid-19 vaccines.

Data released by the Energy Information Administration (EIA) showed crude inventories in the U.S. dropped by 754,000 barrels last week, as against expectations for an increase of about 127,000 barrels.

The EIA data also showed that inventories at Cushing, Oklahoma, declined by 1.7 million barrels last week.

On the flip side, energy services firm Baker Hughes Co said in its closely followed report on Wednesday that U.S. energy firms added oil and natural gas rigs this week, boosting the oil count for the fourth month in a row.

Increased production from Libya is another headache for oil bulls. According to the National Oil Corporation (NOC) in the North African state, the Total oil company from France plans to increase its investment in Libya's oil industry.

The NOC said it has discussed with Total raising Libya's production to "the highest levels".