Oil prices fall after unexpected rise in US crude stocks

Oil prices dropped on Wednesday following an unexpected increase in US crude inventories.

Brent crude futures fell by 93 cents, or 0.86 percent, to $107.82 a barrel as of 00:28 GMT, while US West Texas Intermediate futures declined by 97 cents, or 0.92 percent, to $104.86 a barrel.

Both benchmarks closed over $3 higher on Tuesday, reaching their highest levels since May 19, after a suspension of loading operations in Yanbu heightened supply concerns and Saudi Arabia reduced oil shipments to Europe.

Market sources, citing data from the American Petroleum Institute, said on Tuesday that US crude, gasoline, and distillate inventories all rose last week.

According to the sources, US crude stocks increased by 7.1 million barrels in the week ending September 11, compared with analysts’ expectations in a Reuters poll for a drop of about 1.6 million barrels.