Oil prices fell on Wednesday, May 14, as traders reacted to a reported 4.3 million-barrel jump in U.S. crude inventories ahead of official government data and OPEC’s monthly oil report.
Brent crude dropped by 64 cents to $65.99 per barrel, while U.S. West Texas Intermediate (WTI) also declined 64 cents to $63.03 by mid-morning GMT.
The market responded to preliminary figures from the American Petroleum Institute, which showed increased crude stocks but also significant draws in gasoline and distillates.
UBS analyst Giovanni Staunovo noted that while the crude build was bearish, refined product draws hinted at longer-term supply tightness.
Roth Capital also viewed the product inventory decline as a sign of market undersupply ahead of the summer driving season.
Traders were cautious, awaiting official inventory data from the U.S. Energy Information Administration and OPEC’s monthly supply update due later in the day.
Analysts expect distillate stocks to rise, with gasoline likely falling, according to a Reuters poll.
Despite recent rallies that pushed crude prices to two-week highs, profit-taking and demand concerns capped further gains.
Chicago Fed President Austan Goolsbee added to market uncertainty, suggesting inflation data may not yet reflect the full economic impact of U.S. tariffs.
Overall, while short-term volatility continues, underlying supply trends suggest potential long-term support for oil prices.