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The Emirates News Agency highlighted the decline in oil prices following the release of inventory data that showed a significant build in US crude stocks. According to Reuters, the American Petroleum Institute reported that crude inventories rose by 7.1 million barrels, far exceeding analyst expectations for a draw of about 1.6 million barrels in a Reuters poll. Gasoline and distillate inventories also increased during the period, adding to the bearish market sentiment even as geopolitical factors continued to influence trading.
Brent crude futures dropped 93 cents, or 0.86 percent, to $107.82 a barrel while West Texas Intermediate futures fell 97 cents, or 0.92 percent, to $104.86 a barrel, Reuters figures show. Both benchmarks had settled more than $3 higher the previous day at their strongest levels since May 19 after Saudi Arabia suspended loadings at its Yanbu port due to an attack on the East-West pipeline to the Red Sea. The development led to reduced oil shipments to Europe and initially boosted prices before the inventory data took precedence.
A note from Haitong Futures indicated that the unexpected builds in product inventories weighed on prices but regional stock increases do not change the underlying tightness in the global crude market. The US Energy Information Administration was expected to issue its official inventory report later on Wednesday, offering a more comprehensive view beyond the American Petroleum Institute’s preliminary numbers. Market sources cited by Reuters pointed to the data as a key factor in the session’s trading dynamics.
Earlier assessments from the US Energy Information Administration placed OECD oil stockpiles on track for their lowest levels since 2003 amid various global supply challenges. The latest US inventory build provides a short-term offset to those trends, according to reports from industry analysts. Refinery runs and import levels have played a role in shaping these figures, with strong processing activity contributing to product stock increases.
Saudi supply concerns persisted in the background, with the pipeline attack prompting a reassessment of risks in the Middle East, Reuters reported. Oil prices had reacted sharply upward to the news before the inventory release shifted focus back to demand and stock levels in the United States. Observers noted that such fluctuations underscore the market’s sensitivity to both physical supply data and geopolitical events.
The US strategic petroleum reserve has drawn down substantially this year, with the Energy Information Administration reporting a reduction of nearly 130 million barrels through mid-2026. This context frames the importance of weekly commercial inventory changes as traders gauge overall availability. Additional reports from sources like Investing.com emphasized that the inventory surprise prompted some profit-taking after recent price appreciation driven by Middle East tensions.
