Oil prices drop as U.S. inventories jump fuels demand worries

Shafaq News / Oil prices extends losses on Wednesday as a much bigger-than-expected surge in the U.S. crude inventories and expectations of further interest rate hikes sparked concerns over the prospect of weaker fuel demand and economic recession.

Brent crude futures slid 72 cents, or 0.8%, to $84.86 per barrel by 0442 GMT, while U.S. West Texas Intermediate (WTI) crude futures shed 68 cents, or 0.9% to $78.38.

U.S. crude inventories rose by about 10.5 million barrels in the week ended Feb. 10, according to market sources citing American Petroleum Institute (API) figures on Tuesday.

The build was much larger than the 1.2 million-barrel rise that nine analysts polled by Reuters had expected, potentially pointing to a drop in fuel demand.

Gasoline stocks rose by about 846,000 barrels, while distillate stocks rose by about 1.7 million barrels, according to the sources, who spoke on condition of anonymity.

(Reuters)