Oil prices decline ahead of US inventory data

Oil drilling rigs

Oil prices declined in early trading today, Dec. 13, after closing at their lowest levels in nearly six months in the previous session, as markets await the release of official data on US crude inventories.

International benchmark Brent crude was trading down 0.31% at $73.01 a barrel, at 09:00 am Makkah time. West Texas Intermediate (WTI) crude fell 0.25% to $68.44 a barrel, after closing the previous session at the lowest level since June 27.

Estimates from the American Petroleum Institute showed that crude oil inventories in the United States decreased by 2.35 million barrels during the week ended Dec. 8, while gasoline inventories increased by 5.8 million barrels. Official data on inventories is due to be released later today.

A policy meeting by the US central bank that concludes later today will determine the direction of markets, Reuters reported, citing Tina Teng, a Market Analyst with CMC Markets. "A more hawkish-than-expected stance by the Fed may cause a further drop in crude prices," Teng said.