Oil Down as Official U.S. Data Confirms Build in Crude Supplies

By Gina Lee

Oil prices experienced a decline on Thursday morning in Asia, continuing their downward trend as recent official data confirmed an increase in U.S. crude supplies.

Brent crude slipped 0.18% to $77.95, while West Texas Intermediate (WTI) decreased by 0.03% to $74.81 as of 12:05 AM ET (4:05 AM GMT). Both Brent and WTI futures had shown slight gains earlier in the session.

Following two days of price losses, some investors may be eyeing the next resistance level after Brent futures surpassed the $80 mark for the first time in nearly three years on Tuesday. Analyst Joseph Perry from StoneX noted, “$80 oil is not over-the-top high.”

Recent data released showed a build of 4.578 million barrels in U.S. crude inventory for the week ending September 24. This was contrary to forecasts that had anticipated a draw of 1.652 million barrels. The previous week had recorded a draw of 3.481 million barrels.

Another report released the day before also indicated a build of 4.127 million barrels.

This increase in inventory coincides with U.S. production levels returning to pre-Hurricane Ida figures, with output rising to 11.1 million barrels per day last week.

On the production front, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) is expected to maintain a deal that will increase output by 400,000 barrels per day for November during its next meeting on October 4.

In the Asia Pacific region, ongoing concerns regarding a power crisis and housing market instability in China are drawing attention from investors. Analysts warn that any economic repercussions in the world’s largest crude importer could affect fuel demand significantly.