Oil Prices Dip on U.S. Inventory Build Amid Mideast Tensions

Oil prices dipped slightly in early trading on Wednesday, driven by a larger-than-expected build in U.S. crude inventories, even as supply disruptions eased in Iraq and Libya and escalating tensions in the Middle East raised concerns about global energy flows.

Brent crude futures fell $1.15, or 1.11 percent, to $102.27 a barrel by 0108 GMT, while U.S. West Texas Intermediate crude declined $1.54, or 1.6 percent, to $94.67. The drop followed data from the American Petroleum Institute, cited by market sources, showing U.S. crude stocks increased by 6.56 million barrels for the week ended March 13. Analysts had anticipated a more modest rise of about 380,000 barrels, according to a Reuters poll, suggesting ample supply in the world's largest oil consumer could temper price gains in the near term.

On the supply side, positive developments emerged from two key producers. Iraq's oil minister announced Tuesday that the federal government and the Kurdistan Regional Government had agreed to resume oil exports through Turkey's Ceyhan port, with flows set to restart at 10 a.m. local time (0700 GMT) on Wednesday. The agreement aims to restore shipments that had been halted amid regional...