Crude oil is getting clobbered after a huge inventory build

Crude oil is getting clobbered after the latest inventory data from the Department of Energy showed a larger than expected build. West Texas Intermediate crude oil is lower by 2.8% near $45 per barrel, and is trading at its lowest level since August 15.

The build of 2.3 million barrels was slightly smaller than last week's build of 2.5 million barrels, but was far greater than the 1.1 million barrels that economists had forecast.

Thursday's weakness comes despite word out of Saudi Arabia that it will not flood the market with oil ahead of the informal OPEC meeting scheduled for September 26 to September 28 in Algeria. The promise from Saudi Arabia comes despite the kingdom pumping out oil a record pace.

"The kingdom's production meets the requirements of the customers... the kingdom's production policy will maintain a large degree of responsibility," Saudi Arabian energy minister Khalid al-Falih told Saudi-owned al-Arabiya television on Wednesday.

Investing.com