Oil slips on US stock build, Middle East disruptions limit losses

U.S. crude oil, gasoline and distillate inventories all rose last week, market sources said on Tuesday, citing data from the American Petroleum Institute.

Crude inventories rose by 7.1 million barrels in the week ended September 11, the sources said, citing API data. That compared with analysts' expectations for a draw of about 1.6 million barrels, according to a Reuters poll.

API's data showed unexpected builds in gasoline and diesel inventories have weighed on prices, but regional stock increases do not change the underlying tightness in the global crude market, Haitong Futures said in a note.

Despite the inventory pressure, prices remained resilient as traders focused on disruptions to physical supplies, said Priyanka Sachdeva, head of market insights at Phillip Nova, in a report on Wednesday.

"The bigger concern remains the disruption to Saudi Arabia's East-West pipeline and Yanbu export infrastructure, following attacks on Saudi energy facilities," she said.