Oil prices decline as US crude stocks soar
Oil prices have slipped on the reports of a significant increase in US crude inventories despite holding some gains of the previous trading session after OPEC predicted higher demand next year.
Brent crude LCOc1 fell 11 cents to $54.16 a barrel, while the West Texas Intermediate (WTI) CLc1 dropped 5 cents to $48.18, reported Reuters.
The price difference between the two benchmarks increased to nearly $5.46 in favour of Brent crude as US oil market continues to remain affected due to Hurricanes Harvey and Irma.
The American Petroleum Institute said that crude stockpiles in the US increased by 6.2 million barrels in the week ending 8 September to 468.8 million, nearly double from the analysts’ expectations.
The report also stated that refineries reduced output following Hurricane Harvey, while gasoline and distillate inventories declined.
Earlier, the market received support after the oil cartel anticipated higher demand for its crude next year indicating a rebalancing of the global oil market due to its ongoing production-cutting deal.
The official data by the US Department of Energy’s Energy Information Administration will be published later, which is also expected to provide revised 2017 and 2018 oil production forecast figures following the impact of the hurricanes.