Crude Oil Prices Slip After Surprising Inventory Build

Crude oil prices retreated to around $82.30 per barrel in early Asian trading on Thursday, following a sharp rise in U.S. commercial crude oil inventories.

The data from the U.S. Energy Information Administration (EIA) showed that as of the week ending August 7, U.S. commercial crude oil inventories rose by 17.422 million barrels, far exceeding market expectations of a decline of roughly 1.4 million barrels and sharply diverging from the previous week's increase of 2.479 million barrels.

The sudden build in U.S. inventories has bolstered short sellers' near-term rationale, triggering a double whammy of 'fundamental bearishness plus technical profit-taking.'

However, significant uncertainty remains about whether shipping through the Strait of Hormuz will return to normal and potential supply-side disruptions continue to provide support at the lower end of the price range.