Oil edges higher amid tension over death of Saudi journalist

Tokyo — Oil inched up on Thursday amid tension over the death of a prominent Saudi journalist, with prices steadying after a big drop overnight due to a jump in US crude stockpiles.

US West Texas Intermediate (WTI) crude for October delivery was up 12c, or 0.2%, at $69.87 a barrel by 4.13am GMT, after falling 3% in the previous session to settle below $70 for the first time in a month.

Front-month London Brent crude for December delivery was up 13c, or 0.2%, at $80.18, having ended down 1.7%.

US crude stocks rose 6.5-million barrels last week, the US Energy Information Administration said on Wednesday, the fourth consecutive weekly build and almost triple what analysts had forecast.

“The impact of the inventory-jump weighed on the market and oil seems bearish,” said Kaname Gokon, a trader in Japan.

“The US may have to go ahead with sanctions on Saudi Arabia, which could push prices higher, but Russia and other producers are set to increase supplies.”

Inventories rose sharply even as US crude production slipped 300,000 barrels a day (bbl/day) to 10.9-million barrels a day last week due to the effects of offshore facilities closing temporarily for Hurricane Michael.

US legislators pointed the finger at the Saudi leadership over the disappearance of prominent Saudi critic and journalist Jamal Khashoggi, suggesting sanctions could be possible.

Saudi Arabia denies that it had any role in Khashoggi’s disappearance.