Early Asian trading on Monday saw a further decline in oil prices from the previous session. At the end of the week, oil prices had dropped 2-3% due to market concerns that inflation that was stronger than anticipated may postpone U.S. interest rate cuts. By 0121 , U.S. West Texas Intermediate (WTI) crude prices slid 33 cents to $76.16 a barrel, while Brent crude futures fell 34 cents to $81.28 a barrel
The U.S. Energy Information Administration said last week that during the week ending February 16, oil stocks had increased by 3.5 million barrels to 442.9 million barrels.
The morning’s slide added to those from last week, when WTI dropped over 3% and Brent dropped over 2% as a result of reports that an increase in inflation would cause the U.S. to postpone interest rate cuts by two months. As refineries return from maintenance, the oil stockpiles will begin to decline in the upcoming weeks, which could provide some support for prices.
