Global oil prices dropped after the American Petroleum Institute (API) data showed a surprise increase in US crude stocks. However, losses were restricted due to ongoing tensions in the Middle-East.

Brent crude futures slipped 40 cents to $70.84 a barrel, while US West Texas Intermediate (WTI) crude futures dropped 56 cents to settle at $61.22 per barrel, reported Reuters.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

According to API, the US crude stocks increased by 8.6 million barrels in the week to 10 May to 477.8 million. This is contrary to analysts’ expectations for a fall of 800,000 barrels. Official data from the Energy Information Administration (EIA) is awaited.

Earlier, oil prices jumped after Saudi Arabia announced that attacked two of its oil pumping stations have been struck by armed drones. These incidents happened amidst growing tensions between the US and Iran with Washington placing sanctions on Iranian exports.

Swiss bank UBS was quoted by Reuters as saying: “Given that nearly one-third of global oil production and nearly all of global spare capacity are in the Middle East, the oil market is very sensitive to any attacks on oil infrastructure in this region.”

Apart from the Middle-East tensions, the oil market received support from the ongoing trade dispute between the US and China. Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) estimated that oil demand will surpass the expected levels in 2019 with shrinking supplies. The market will further tighten if OPEC continues to restrict output throughout 2019.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

On the other hand, the International Energy Agency said the increasing US output will largely substitute falling exports from Iran and Venezuela, requiring ‘very little extra’ oil from OPEC.