Europe Asia News

According to analysts, the unexpected increase in U.S. inventories has overshadowed concerns about the potential impact of sanctions related to Russia.

The American Petroleum Institute (API) reported that U.S. crude oil stocks rose by 4.4 million barrels last week, marking a third consecutive weekly build. If confirmed, this would take inventories to their highest level in more than five months.

The data have heightened worries that global supply will outpace demand, while the International Energy Agency (IEA) is also forecasting a record surplus in oil stocks next year. In a further sign of rising supply, Vortexa estimates that the volume of crude held on tankers – either en route to buyers or stored in floating storage – climbed to around 1.4 billion barrels last week.

Losses were partly limited by U.S. sanctions on Rosneft and Lukoil, which are set to come into force within days. In anticipation of these measures, some of Asia’s major buyers have suspended parts of their purchases, while Europe’s diesel market has strengthened.