WASHINGTON (dpa-AFX) - Oil prices dropped on Wednesday after data showed crude inventories in the U.S. rose in the week ended January 24th. Concerns about the outlook for oil demand from China continued to weigh on oil prices.
Easing worries about supply disruptions from Libya contributed as well to the drop in oil prices. According to reports, Libya's state-run National Oil Corp said oil exports were continuing without disruption following talks with protesters at the Es Sider and Ras Lanuf ports on Tuesday.
Worries about potential new tariffs hurt as well. On Tuesday, the White House reaffirmed President Donald Trump's plan to impose 25% tariffs on imports from Canada and Mexico from Feb. 1.
West Texas Intermediate Crude oil futures ended lower by $1.15 or about 1.56% at $72.62 a barrel.
Brent crude futures were down $0.72 or 0.95% at $75.77 a barrel a little while ago.
Data from the Energy Information Administration (EIA) showed crude oil inventories jumped by 3.5 million barrels last week after dipping by 1.0 million barrels in the previous week. Economists had expected crude oil inventories to surge by 3.7 million barrels.
At 415.1 million barrels, U.S. crude oil inventories remain about 6% below the five-year average for this time of year, the report said.
The report said gasoline inventories also shot up by 3.0 million barrels last week and are just slightly below the five-year average for this time of year.
Meanwhile, the EIA said distillate fuel inventories, which include heating oil and diesel, tumbled by 5.0 million barrels last week and are about 9% below the five-year average for this time of year.
Saudi Arabia's energy minister reportedly held talks with OPEC+ counterparts in the wake of growing economic uncertainties and U.S. President Trump's call for lower oil prices.
Markets await a ministerial meeting of the Organization of Petroleum Exporting Countries and allies, collectively known as OPEC+, on February 3rd. The group is expected to go ahead with a plan to start returning 2.2 million bpd of voluntary production cuts with 122,000 bpd monthly increase from April 2025.
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