Oil Prices Sink to Two-Month Low as Surprise U.S. Inventory Surge Triggers Oversupply Fears
Crude oil prices tumbled on Wednesday, with West Texas Intermediate (WTI) hitting its lowest level in two months, as an unexpected build in U.S. crude inventories rattled market sentiment and raised concerns of an oversupplied market.
Data from the U.S. Energy Information Administration (EIA) revealed a surprise increase of 5.2 million barrels in crude stocks for the week ending August 8, sharply contrasting with analysts’ expectations of a modest 1.8 million-barrel draw. The sudden jump fueled speculation that demand might be weakening, even as global production remains strong.
Market analysts warn that the combination of robust supply from major producers and signs of slowing economic activity could weigh further on prices in the coming weeks. WTI futures fell more than 3% to trade below $77 per barrel, while Brent crude also slid, testing key technical support levels. Traders are now closely watching upcoming economic data and OPEC+ commentary for clues on whether the price slump could deepen or stabilize.