Oil slips on US stock build, Middle East disruptions limit losses

According to Business Recorder, oil prices declined on Wednesday, giving back part of a two-day gain that followed an unexpectedly large increase in US crude stocks. Brent futures were 73 cents lower, or 0.67%, at $108.02 per barrel by 0450 GMT, and West Texas Intermediate had fallen $1.1, or 1.04%, to $104.73.

Both benchmarks had finished more than $3 higher on Tuesday, reaching their loftiest levels since May 19, as a suspension of loadings at Yanbu port fed supply worries while Saudi Arabia reduced its crude deliveries to Europe. Industry figures compiled by the American Petroleum Institute indicated that US crude, gasoline and distillate stocks all increased last week. US crude holdings grew by 7.1 million barrels during the seven days ending September 11, far above the roughly 1.6 million barrel draw that analysts had expected in a Reuters poll.

Haitong Futures said in a note that the inventory gains did not alter the tight global crude supply picture, while traders kept their attention on physical supply disruptions. Priyanka Sachdeva of Phillip Nova said the bigger worry was damage to Saudi Arabia's East-West pipeline and the Yanbu export facilities after attacks on energy sites. Preliminary shipping figures put visible vessel crossings in the Strait of Hormuz at four on Tuesday, versus seven a day earlier and a 10-day average of 18.