Oil prices dip amid unexpected US inventory build, supply concerns
Shafaq News/ Oil prices slipped inearly Asian trading on Wednesday following a brief rebound in the previoussession after industry data showed an unexpected build in US crude oil andgasoline inventories, offsetting global oil supply concerns.
Brent crude futures fell 21 cents,or 0.27%, to $76.27 a barrel by 0020 GMT. US West Texas Intermediate crudeslipped 25 cents, or 0.34%, to $72.95 per barrel.
US crude oil, gasoline anddistillate inventories rose last week, according to market sources citingAmerican Petroleum Institute figures on Tuesday.
Benchmarks slipped accordingly. BothWTI and Brent had bounced off multi-month lows to settle higher in the previoussession.
The API figures showed crude stockswere up by 176,000 barrels in the week ended Aug. 2, the sources said, speakingon condition of anonymity. Analysts polled by Reuters had expected crude stocksto fall by 700,000 barrels.
Gasoline inventories rose by 3.313million barrels against analysts' expectations for a 1 million bbl draw, whiledistillate stocks rose by 1.217 million barrels, a bigger build thananticipated.
The US Energy InformationAdministration is due to release weekly inventory data at 10:30 a.m. (1430 GMT)on Wednesday.
On Monday, Brent futures slumped totheir lowest since early January and WTI futures had touched their lowest sinceFebruary, as a global stock market rout deepened on growing concerns of apotential recession in the US, the world's largest petroleum consumer.
However, both benchmarks broke athree-session declining streak on Tuesday as tensions in the Middle East stokedsupply concerns, supporting prices.
Iran's vow of retaliation againstIsrael and the US following the killing of two militant leaders has raisedconcerns that a wider war is brewing in the Middle East.
"Any escalation of the conflictin the Middle East could see a greater risk of disruptions to supplies from theregion," ANZ analyst Daniel Hynes said.
Lower production at Libya's 300,000barrel-per-day (bpd) Sharara oilfield is also adding to concerns of supplyshortages.
Global oil inventories decreased byaround 400,000 bpd in the first half this year, according to US EnergyInformation Administration (EIA) estimates published on Tuesday. It expectsstockpiles to decline by around 800,000 bpd in the second half of the year.
(Reuters)
