Oil Prices Decline on Unexpected US Crude Build and Middle East Disruptions

Oil prices declined on Wednesday after a two-day surge following an unexpectedly large build in U.S. crude inventories, while supply disruptions in the Middle East continued to limit losses.

Brent crude futures fell $0.73 (0.67%) to $108.02 per barrel at 0450 GMT, while U.S. West Texas Intermediate futures were down $1.10 (1.04%) at $104.73 per barrel.

The prices had reached their highest levels since May 19 on Tuesday due to the Yanbu loading suspension and Saudi Arabia's cut in oil shipments to Europe.

U.S. crude oil, gasoline, and distillate inventories all rose last week, according to market sources citing data from the American Petroleum Institute.