WTI drops below $66 after EIA reports larger-than-expected buildup in crude inventories

• EIA says crude oil inventories in the U.S. increased by 5.5 million barrels.
• Iranian supreme leader says Iran can export “as much oil as it needs.”
• Saudi Arabia reiterates that they will make sure to keep the oil market balanced.

Crude oil prices came under a renewed selling pressure in the last hour after the U.S. Energy Information Administration (EIA) in its latest weekly report showed a larger-than-expected build in the crude oil inventories. The barrel of West Texas Intermediate, which spent the majority of the day trading above the $66 mark, was last seen trading at $65.90, losing 0.4% on a daily basis.

The EIA today said that crude oil stocks increased by 5.5 million barrels in the week ending April 19 to come in higher than the market expectation of 1.25 million barrels. “Total commercial petroleum inventories increased last week by 8.8 million barrels last week,” the EIA further added in its press release.

Earlier today, Saudi Arabian Energy Minister Khalid Al-Falih said that they would make sure that the global oil market remained balanced and hinted at supplying the market to match the demand by saying: “We will not leave our customers scrambling not finding oil they need.” These remarks also confirmed Reuters’ report about Saudi Arabia looking to adjust its output in response to the U.S. actions on Iran.

Commenting on the U.S. policy, Iranian Foreign Minister Javad Zarif today said that the U.S.  was “pursuing a very dangerous policy” toward Iran. Earlier in the day,  Iranian supreme leader, Ayatollah Ali Khamenei, said that America’s efforts in sanctioning Iranian oil wouldn’t get anywhere, adding Iran would continue to export as much oil as needed, to keep oil’s gains limited during the European trading hours.

Technical levels