Oil prices fell on Wednesday after a report showed US crude inventories rose unexpectedly, while concerns about the impact of a possible widening conflict in the Middle East on output in one of the world’s biggest crude-producing regions eased slightly.
Brent crude futures fell 41 cents, or 0.5 percent, to $80.28 a barrel, while US West Texas Intermediate (WTI) crude futures fell more than $1 to $77.32 a barrel.
US crude inventories rose by 1.4 million barrels, compared with expectations for a 2.2 million-barrel draw, data from the US Energy Information Administration showed on Wednesday. Gasoline and distillate stocks fell more than expected.
The American Petroleum Institute data on Tuesday showed inventories fell by 5.21 million barrels last week.
Also limiting oil price gains was the International Energy Agency’s (IEA) keeping its forecast for global oil demand growth in 2024 unchanged on Tuesday, but cutting its estimate for 2025, citing the impact of a weak Chinese economy on consumption, which further limited the rise in prices. This came after OPEC cut its forecast for demand in 2024 for similar reasons.
