Oil prices slid 1.5% on Wednesday as U.S. crude stockpiles unexpectedly surged higher last week and after the Organization of the Petroleum Exporting Countries and their allies (OPEC+) said it would raise its oil output target by only 100,000 barrels per day (bpd).
Brent crude futures were down $1.23, or 1.2%, at $99.31 U.S. a barrel. West Texas Intermediate (WTI) crude futures slipped by $1.42, or 1.5%, to $92.97. Both contracts had seesawed previously.
U.S. crude stocks rose 4.5 million barrels last week to 426.55 million barrels, according to data from the U.S. Energy Information Administration, compared with an analyst forecast for a draw of 600,000 barrels.
Industry data late Tuesday showed a smaller weekly U.S. crude build of 2.2 million barrels, traders said.
Ministers for OPEC+ agreed to the small increase to the group’s output target, equal to about 0.1% of global oil demand.
While the United States has asked the group to boost output, spare capacity is limited and Saudi Arabia may be reluctant to beef up output at the expense of Russia, hit by sanctions over the Ukraine conflict.
Ahead of the meeting, OPEC+ trimmed its forecast for the oil market surplus this year by 200,000 bpd to 800,000 bpd, three delegates told Reuters.
Also weighing on prices, top Iranian and U.S. officials said they were travelling to Vienna to resume indirect talks about Iran’s nuclear program, reviving the all but vanished hopes of a removal of sanctions hampering Iranian oil exports. futures rose 94 cents, or 1%, to $95.36 a barrel.
Meanwhile, data from the American Petroleum Institute, an industry group, showed U.S. crude stocks rose by about 2.2 million barrels for the week ended July 29. Gasoline inventories fell by 200,000 barrels and distillate stocks by about 350,000 barrels.
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