US oil prices drop more than $1 as inventory build raises oversupply fear
FILE PHOTO: An oil pumpjack is pictured in the Permian basin, Loco Hills regions, New Mexico, U.S., April 6, 2023. REUTERS/Liz Hampton/File Photo
TOKYO : U.S. crude futures declined more than $1 in early trade on Thursday after an unexpected build in U.S. crude oil inventories last week raised investor concerns about oversupply.
U.S. West Texas Intermediate (WTI) crude futures slid $1.21, or 1.9 per cent, to $61.94 by 2309 GMT. The benchmark slipped 0.8 per cent on Wednesday.
Data from the Energy Information Administration showed
crude stockpiles rose by 3.5 million barrels to 441.8 million barrels in the week ended May 9, compared with analysts' expectations in a Reuters poll for a 1.1 million-barrel draw.
API industry data also showed a large build of 4.3 million barrels in crude stocks last week, market sources said on Tuesday.
The Organization of the Petroleum Exporting Countries and allied producers, known as OPEC+, has been increasing supply, although OPEC on Wednesday trimmed its forecast for growth in oil supply from the United States and other producers outside the wider OPEC+ group this year.
