10.01.202419:17:00UTC+00Oil Futures Settle Lower As Official Data Shows Jump In Inventories

Crude oil prices dropped on Wednesday after data showed an unexpected increase in U.S. crude inventories in the week ended January 5th.

Oil prices had surged higher earlier in the day due to stoppage of production at Libya's Sharara oilfield due to political unrests, and on tensions in the Middle East that has resulted in several major shipping companies staying away from the Red Sea route.

West Texas Intermediate Crude oil futures for February ended down $0.87 at $71.37 a barrel, coming off an early high of $73.59 a barrel.

Brent crude futures were down $0.88 at $76.71 a barrel a little while ago.

Data from the Energy Information Administration (EIA) showed crude oil inventories in the U.S. rose by 1.338 million barrels last week, as against forecasts for a decline of about 700,000 barrels.

Gasoline stocks increased 8 million barrels last week to 245 million barrels, while distillate stockpiles rose by 6.5 million barrels last week to 132.4 million barrels, the highest level since September 2021.