Oil slips due to inventory growth in US

A decline in black gold prices is getting evident on Wednesday. That is driven by an unexpected increase in oil and fuel inventories in the U.S. In this regard, the latest data raises concerns about fuel demand. Thus, the price level reached on Tuesday is offset now.

According to a source citing American Petroleum Institute (API) data, crude oil inventories jumped by 14.9 million barrels over the past week. At the same time, distillate inventories increased by about 1.1 million barrels.

Analysts polled by Reuters expected crude stocks to fall by more than 2 million barrels and distillate stocks to fall by 500,000 barrels.

To verify whether the figures correspond to API data, traders will look out for the release of official statistics on inventories from the U.S. Energy Information Administration on Wednesday.

This week the focus is on inflation statistics which will be published on Thursday. Analysts say a lower inflation figure will cause the dollar to fall. A weaker dollar could boost demand for black gold, as it makes the commodity cheaper for buyers holding other currencies.