Oil falls from one-month high after U.S. fuel inventory surge

The global benchmark Brent crude futures fell $1.12, or 1.40%, to $79.68 a barrel, as of 0423 GMT. U.S. West Texas Intermediate (WTI) crude futures lost $1.04, or 1.3%, to $76.81 a barrel.

U.S. crude oil stockpiles fell last week while gasoline inventories surged more than 10 million barrels, the biggest weekly build since April 2020, as supplies backed up at refineries due to reduced fuel demand. 

"Implied product demand – particularly for gasoline – slumped, suggesting that the public were cautious about travel in the wake of surging cases of the Omicron variant," Caroline Bain, chief commodities economist at Capital Economics said in a note.

"These fears are likely to persist for a few weeks yet."

The United States reported nearly 1 million COVID-19 cases on Monday, setting a global record as the spread of the Omicron variant showed no signs of slowing, while heavy snow also disrupted traffic.