Oil prices drop on swelling U.S. stockpiles, but markets remain tense

Oil prices drop on swelling U.S. stockpiles, but markets remain tense
  • Clock-gray 11:28
  • calendar-gray 22 May 2019

Oil prices fell on Wednesday after industry data showed an increase in U.S. crude inventories and as Saudi Arabia pledged to keep markets balanced, ONAreports citing Reuters.

However, analysts said oil markets remained tight amid supply cuts led by producer group OPEC and as political tension escalates in the Middle East.

Brent crude futures were down 39 cents, or 0.5 percent, at $71.79 at barrel by 0658 GMT.

U.S. West Texas Intermediate (WTI) crude futures for July delivery were down 59 cents, or 0.9 percent, at $62.54. The June contract expired on Tuesday, settling at $62.99 a barrel, down 11 cents.

The American Petroleum Institute (API) said on Tuesday that U.S. crude stockpiles rose by 2.4 million barrels last week, to 480.2 million barrels, compared with analyst expectations for a decrease of 599,000 barrels.

Official data from the U.S Energy Information Administration’s oil stockpiles report is due later on Wednesday.

Outside the United States, Saudi Arabia on Wednesday said it was committed to a balanced and sustainable oil market.

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