KUALA LUMPUR- Oil prices eased on Wednesday after industry data showed US crude inventories unexpectedly rose last week, signaling a potential hiccup in demand, though concerns over supply kept losses in check.
Brent crude futures fell 23 cents, or 0.2 percent, to $96.08 a barrel.
US West Texas Intermediate crude futures declined 28 cents, or 0.3 percent, to $90.22 a barrel.
US crude stocks rose by about 2.2 million barrels for the week ended Aug. 5, according to market sources citing American Petroleum Institute figures. API/S
Analysts polled by Reuters had forecast that crude inventories would rise by around 100,000 barrels.
Official government data is due on Wednesday at 10:30 a.m. EDT.
“Whatever crude demand destruction that occurs from a weakening global economy won’t be able to drag down oil prices much lower given how low the supply outlook remains,” said Edward Moya, senior market analyst at OANDA.
“Much attention is falling on Iran nuclear deal talks and that could be a wildcard in providing much needed supplies.”
The European Union on Monday put forward a “final” text to revive the 2015 Iran nuclear deal which would boost Iran’s crude exports. A senior EU official said he expected a final decision on the proposal within “very, very few weeks”.
Both oil benchmarks were volatile on Tuesday, both rising and falling by more than $1 a barrel during the session, but they settled slightly lower as investors weighed recessionary concerns with news that some oil exports had been suspended on the Russia-to-Europe Druzhba pipeline that transits Ukraine. – Reuters
