Crude Prices Plummet on Surprise US Inventory Build Amid Ongoing Middle East Disruptions
Global crude prices retreated on Wednesday after an unexpectedly large build in US inventories, despite ongoing supply disruptions in the Middle East.
The Brent crude futures fell by $0.73 or 0.67% to settle at $108.02 a barrel, while WTI futures declined by $1.10 or 1.04% to trade at $104.73 a barrel.
The surprise inventory build of 7.1 million barrels in the US was significantly higher than analysts' expectations of a 1.6 million barrel draw.
Analysts noted that regional stock increases do not fundamentally alter the underlying tightness in the global crude market, and prices remained resilient due to ongoing supply disruptions in the Middle East.
The suspension of loadings at Saudi Arabia's Yanbu port has stoked significant supply concerns, with preliminary shipping data showing a sharp decline in vessel transits through the Strait of Hormuz.