(Bloomberg) — Oil dropped in another choppy session after a surprise buildup in US crude stockpiles undercut the threat to supplies from recent escalations in the Red Sea.
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West Texas Intermediate slid 1.2% to settle near $71 a barrel after swinging more than $2 throughout the day. Bearish sentiment spread after US inventories unexpectedly swelled 1.34 million barrels, the biggest increase since mid-December. Inventories at the Cushing storage hub, the delivery point for WTI futures, drew down for the first time in 12 weeks, temporarily pulling the contract’s prompt spread into a bullish backwardated structure.
Oil had earlier rallied as much as 1.9% after Iran-backed Houthi rebels launched more attacks on merchant vessels, though no injuries or damage were reported. The incidents — which have continued despite the deployment of a US-led maritime force — are seen as a spillover from the Israel-Hamas…
