Oil prices dropped today as the US industry data showed that crude inventories in the world’s largest oil consumer rose nearly six times, which created demand concerns.

Brent crude slipped by 29 cents to $107.38 a barrel, while US oil was down by 32 cents to $102.23, reported Reuters.

Crude prices went down after the American Petroleum Institute data showed that the US crude inventories rose by 7.1 million barrels in the week to 4 April, data that was nearly six times more, compared with analysts’ expectations for an increase of 1.3 million barrels.

The data also showed that crude stocks at the Cushing, Oklahoma, delivery hub rose by 204,000 barrels.

Investors are now waiting for the US Energy Information Administration (EIA) data, which is scheduled to be released later today to better gauge the demand outlook. Oil prices got some more support from the previous developments in Libya and the progress in the country’s plan to ramp up exports.

But the crude prices may rise in near future as geopolitical tensions over Ukraine worsening.

US Secretary of State John Kerry accused Russian agents and special forces of stirring unrest in eastern Ukraine.

This may not directly impact oil supplies globally but oil traders are worried that simmering tensions between world powers and Russia could impact geo-political situation.

Image: The US gasoline stocks fell by 3.6 million barrels, compared with expectations of a 700,000-barrel decline. Photo: courtesy of Anusorn P nachol.