Oil near 4-mth low after OPEC+ supply plan, US stock build

Oil prices hovered near four-month lows in Asia on Wednesday as markets digested an OPEC+ decision to boost supply later this year and following an increase in U.S. crude and fuel stocks, Reuters reported.

Brent crude futures were up 4 cents at $77.56 a barrel by 0307 GMT, while U.S. West Texas Intermediate crude futures were flat at $73.25 a barrel.

Both contracts fell nearly a dollar on Tuesday to their lowest settlement levels since early February, and had declined around $3 a barrel on Monday.

The slide followed news from the Organization of the Petroleum Exporting Countries and its allies of plans to increase supply from October despite recent signs of weakening demand growth.

In the U.S., crude oil, gasoline and distillate stocks rose last week, according to sources citing American Petroleum Institute figures.

API figures showed crude stocks increased more than 4 million barrels in the week ended May 31, against analysts’ forecasts in a Reuters poll for a 2.3 million-barrel decline.

Independent energy analyst Tim Evans wrote that the crude figures in the API report “represents a clear bearish surprise.”

Gasoline stocks rose by more than 4 million barrels, twice the build expected by analysts.

The U.S. Energy Information Administration will publish official stockpiles data on Wednesday at 1430 GMT.

Data for last week is being closely watched by markets because it reflects fuel usage around the Memorial Day holiday, the start of the so-called U.S. driving season.