Crude oil prices are expected weaker on Wednesday in Asia after the American Petroleum Institute (API) reported a sharp build in crude oil stocks, adding to a bearish tone following comment that Saudi Arabia could add more supplies to the market
ICE Brent crude oil futures for the front month were down 4.35 percent to US$76.36 a barrel in post settlement trade, while NYMEX West Texas Intermediate eased 4.43 percent to US$66.29 a barrel. Brent settled down 4.25 percent to US$76.44 a barrel, and WTI dropped 4.22 percent to US$66.43 a barrel.
U.S. crude oil stocks jumped by 9.9 million barrels last week to 418.4 million, API said, compared to an expected gain of 3.7 million barrels.
Crude throughput in refineries rose by 50,000 barrels per day (bpd). Gasoline supplies eased 2.8 million barrels on the week, compared to an expected 1.9 million-barrels decline, while distillates fell 2.4 million barrels, compared to an expected dip of 1.9 million-barrels.
At the oil storage hub of Cushing, Oklahoma, inventories gained 971,000 barrels. U.S. crude imports rose last week by 944,000 bpd to 8 million bpd. THE API figures are followed by official data on Wednesday from the Energy Information Administration at 1030 U.S. EDT
Overnight, Saudi Energy Minister Khalid al-Falih said in Riyadh that OPEC and allies would sign a deal in December to coordinate production, Reuters reported, adding that Saudi Arabia would produce between one million and two million bpd more than current levels in the near term.