Oil falls ahead of US inventory data

Oil drilling rigs

Oil prices declined today, Oct. 12, as geopolitical tensions in the Middle East continued. Markets are awaiting weekly data on oil inventories in the United States, amid expectations of an increase.

International benchmark Brent crude was trading down 0.26% at $85.60 a barrel, at 08:05 am Makkah time.

West Texas Intermediate (WTI) crude fell 0.4% to $83.16 a barrel, after losing 2.9% in the previous session.

US oil inventories rose by 12.94 million barrels during the week ended Oct. 6, in what may be the largest increase in inventories since the first week of January, the American Petroleum Institute’s data showed.

The US Energy Information Administration is scheduled to issue official inventory data later today, amid expectations that crude stocks will increase by 1.3 million barrels.

ING analysts said in a note to clients that the American Petroleum Institute's estimates of market sentiment today are unlikely to be supported, and that expectations of an increase in oil inventories in the US were mostly a result of ongoing maintenance work for refineries.

The note added that the increase in oil prices resulting from the risks of tensions in the Middle East began to fade with the decline of the conflict on both sides.