Oil nears 4m low on Wednesday

Oil hovered near a four-month low following an industry report indicating a rise in US crude stockpiles, exacerbating bearish sentiment alongside OPEC+‘s supply increase plan, Bloomberg reported.

The American Petroleum Institute revealed a 4.1 million barrel surge in US inventories last week, with Brent trading above $77 and West Texas Intermediate (WTI) close to $73 after its fifth consecutive lower close on Tuesday.

The API also noted an uptick in crude stockpiles at the Cushing, Oklahoma storage hub, along with significant builds in national gasoline and distillate inventories.

Despite concerns over demand and increased output from non-OPEC+ members, the market saw a 5 per cent decline in oil prices this week following OPEC+’s decision to ease supply cuts in Q4.

Algorithmic trading further fueled the selloff. While OPEC+’s move rattled the market, RBC Capital Markets LLC anticipates a reversal if weakness persists. Most analysts had projected an extension of curbs through year-end.