Oil Dips on US Crude Stockpile Build
West Texas Intermediate (WTI) prices fell, extending a decline that began last Thursday, as the American Petroleum Institute (API) reported a 1 million-barrel increase in US crude stockpiles and a surge in fuel inventories. These figures, based on a document obtained by Bloomberg, contrast with the typical year-end drawdowns in crude inventories for tax purposes.
Brent crude also closed lower. Official government figures are due for release later on Thursday.
Despite the recent dip, oil prices remain elevated compared to the beginning of the year. The rally was driven by increased heating demand in the Northern Hemisphere and supply disruptions caused by US sanctions on Russia's oil industry. India has recently strengthened its support for Russian insurers to ensure continued access to discounted oil barrels.
The market is closely monitoring the actions of the Biden administration following tariff threats against China, Canada, and Mexico, as well as warnings of further penalties on Moscow if President Vladimir Putin does not engage in efforts to end the war in Ukraine.