Oil slips on higher US crude stocks; market watches Middle East
Oil prices fell on Wednesday after industry data showed U.S. crude inventories swelled more than expected, though crude futures were still up about 3% this week as traders factored in continuing conflict in the Middle East.
Brent crude futures dropped 73 cents, or 1%, to $75.31 a barrel by 0917 GMT. U.S. West Texas Intermediate crude futures shed 74 cents, also 1%, to $71.00 a barrel.
Oil had settled higher in the previous two sessions, paring the previous week's losses of more than 7%. Those declines stemmed from worries about Chinese demand and some easing concerns around Middle East oil supply being disrupted.
Wednesday's price drop came after data showed U.S. crude stocks rose by 1.64 million barrels last week, according to market sources citing American Petroleum Institute figures on Tuesday. Analysts polled by Reuters had expected an increase of 300,000 barrels.
Official U.S. government oil inventory data is due on Wednesday at 10:30 a.m. EDT (1430 GMT).
But the inventories impact on prices was countered by stubborn concerns over potential risk to oil supply from conflict in the Middle East.
Source: Reuters