Oil slides as U.S. crude and gasoline stocks surge

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Oil prices slipped in early Asian trade on Friday as U.S. crude and gasoline inventories jumped, while Saudi Arabia and Washington continued to clash over plans by OPEC+ to slash production.

Brent crude futures fell 15 cents, or 0.2%, to $94.42 per barrel by 0034 GMT, while U.S. West Texas Intermediate crude futures were down 21 cents, or 0.2%, cents at $88.90 per barrel.

A larger-than-expected surge in U.S. crude oil in storage, along with a rise in gasoline stocks, weighed on oil prices. Crude inventories grew by 9.9 million barrels in the week to Oct. 7 to 439.1 million barrels, the U.S. Energy Information Administration said, far larger than analysts' expectations in a Reuters poll for a 1.8 million-barrel rise.Gasoline stocks jumped by 2 million barrels in the week to 209.5 million barrels, compared with analysts expected a 1.8 million-barrel drop.

Keeping prices from falling farther was a steep drawdown in distillate stocks that came as heating oil demand is expected to rise as winter approaches. Meanwhile, Saudi Arabia and the United States continued to clash over a decision by the Organization of Petroleum Exporting Countries and allies, known as OPEC+, last week to cut its oil production target. Saudi Arabia, OPEC's de facto leader, rejected criticisms by Washington as "not based on facts" and that the U.S. request to delay the cut by a month would have had negative economic consequences.

 

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