Oil Prices Dip on Unexpected Inventory Builds and Saudi Supply Concerns
Oil prices dropped on Wednesday as unexpected US crude inventory builds weighed on sentiment.
The Brent crude futures price fell by 93 cents, or 0.86%, to $107.82 a barrel at 0028 GMT, while US West Texas Intermediate futures declined by 97 cents, or 0.92%, to $104.86 a barrel.
The unexpected build in US crude inventories rose by 7.1 million barrels in the week ended September 11, far exceeding analysts' expectations for a draw of about 1.6 million barrels, according to API data cited by market sources.
Saudi Arabia's suspension of oil loadings at its Yanbu port due to an attack on its East-West pipeline added to supply concerns, but regional stock increases do not change the underlying tightness in the global crude market, Haitong Futures said.