Oil down with large US inventory build

By Zeynep Beyza Kilic

Oil prices declined on Thursday, supported by data showing a major decline in demand in the US, the world's largest oil consumer.

The international benchmark crude Brent traded at $81.27 per barrel at 09.24 a.m. local time (0624 GMT), a 0.40% decrease from the closing price of $81.60 a barrel in the previous trading session on Wednesday.

The American benchmark, West Texas Intermediate (WTI), traded at the same time at $76.28 per barrel, down 0.47% from Wednesday's close of $76.64 per barrel.

Data released by the Energy Information Administration (EIA) on Wednesday showed that US commercial crude oil inventories increased by 12 million barrels to 439.4 million barrels during the week ending Feb. 9. This exceeded the market expectation of an inventory increase of around 8.5 million barrels.

The larger-than-expected build in stocks signaled a drop in demand in the US, the world's largest economy, putting downward pressure on oil prices.

Meanwhile, the ongoing conflict in the Red Sea and the Middle East continues to affect price fluctuations by fueling concerns about global supply disruptions and placing upward pressure on prices.

US and British forces launched new airstrikes in Yemen's coastal province of Hudaydah on Wednesday, the Houthi group said.

The attacks come in retaliation against the Houthis targeting cargo ships in the Red Sea owned or operated by Israeli companies or transporting goods to and from Israel in solidarity with the Gaza Strip.

With tensions escalating due to joint airstrikes carried out by the US and UK against Houthi targets in Yemen, the group declared that it considered all American and British ships to be legitimate military targets.

US and British forces have targeted Yemen with 403 airstrikes since January, Yemen's Houthi group said Wednesday.