Oil prices dropped today after hitting a multi-year high above $83 a barrel.
Prices were pressured by an American Petroleum Institute (API) report showing rising crude inventories in the US and technical indicators suggesting prices have rallied too fast.
The latest surge in the price of crude was underpinned by the refusal of the Organization of the Petroleum Exporting Countries and allies to boost output faster and comes against a backdrop of concern about tight energy supply globally.
On Monday, OPEC, Russia and other allies, known as OPEC+, chose to stay with a plan to increase output gradually and not boost it further as the US and other consumer nations have been urging.
Brent crude rose as high as $83.47 earlier today, the highest since October 2018, and was down 98 cents, or 1.2%, at $81.58 this afternoon.
US crude climbed to $79.78, the highest since November 2014, before retreating to trade 71 cents lower at $78.22.
"An energy crisis is unfolding with winter in the northern hemisphere still to begin, and sets the stage for even higher oil prices," said Stephen Brennock of oil broker PVM.
The price of Brent has surged more than 50% this year, adding to inflationary pressure that could slow recovery from the Covid-19 pandemic.
Natural gas has surged to a record peak in Europe and coal prices from major exporters have also hit all-time highs.
