Oil prices fall after unanticipated surge in US inventories

(MENAFN) Oil prices saw a decline in early Asian trading on Wednesday, reversing a brief rebound from the previous session. This drop came after data revealed an unexpected increase in U.S. crude and gasoline inventories, which mitigated concerns about global oil supply disruptions. Brent crude futures fell by 21 cents, or 0.27 percent, settling at USD76.27 a barrel by 0020 GMT. Meanwhile, U.S. West Texas Intermediate crude dropped by 25 cents, or 0.34 percent, to USD72.95.

The decrease in oil prices followed a report from the American Petroleum Institute indicating a rise in U.S. crude, gasoline, and distillate inventories for the previous week. Specifically, crude inventories increased by 176,000 barrels for the week ending August 2, contrary to the expectations of a 700,000-barrel decline forecasted by analysts. Gasoline stocks rose by 3.313 million barrels, far exceeding the anticipated 1 million-barrel decrease, while distillate stocks grew by 1.217 million barrels, a larger-than-expected increase.

The U.S. Energy Information Administration is scheduled to release its weekly inventory data at 1430 GMT on Wednesday, which could provide further insights into market dynamics. Additionally, geopolitical tensions are contributing to market volatility, with Iran vowing retaliation against Israel following recent high-profile assassinations. This development has heightened fears of a broader conflict in the Middle East, potentially impacting oil supplies and market stability. 

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