Oil Prices Slide as U.S. Crude Stockpiles Surge Amid Middle East Disruptions
Oil prices declined on Wednesday after a surprise increase in U.S. crude inventories put downward pressure on the market. However, concerns over disruptions to Middle Eastern supplies continued to provide support.
The Brent crude futures price fell 73 cents, or 0.67%, to $108.02 a barrel by 0450 GMT, while U.S. West Texas Intermediate (WTI) crude declined $1.10, or 1.04%, to $104.73 a barrel.
The unexpected increase in U.S. stockpiles, which rose by 7.1 million barrels in the week ended September 11, according to data from the American Petroleum Institute (API), raised concerns about near-term demand and placed renewed pressure on crude prices.
Despite the inventory increase, analysts said it does not necessarily signal a loosening of the broader global oil market. Haitong Futures noted that regional stock increases do not change the underlying tightness in the global crude market.