Oil fell as an industry report signaling a jump in U.S. stockpiles eased concerns over a supply crunch, after a drone attack in Saudi Arabia had highlighted the vulnerability of the country’s energy infrastructure.
Futures in New York pared a loss of as much as 1.1% after closing up 1.2% on Tuesday. The American Petroleum Institute was said to report an 8.63 million-barrel increase in crude inventories last week, compared with a forecast of 1.2 million barrel decline in a Bloomberg survey, before government data due Wednesday. The Yemeni rebel attack on two Saudi pumping stations forced the world’s top oil exporter to temporarily shut its main cross-country crude link.
West Texas Intermediate crude for June delivery fell 45 cents, or 0.7%, to $61.33 a barrel on the New York Mercantile Exchange at 12:46 p.m. in Singapore. It dropped as much as 66 cents earlier after closing 74 cents higher on Tuesday.
Brent for July settlement was down 28 cents, or 0.4%, to $70.96 a barrel on the London-based ICE Futures Europe exchange after advancing 1.4% on Tuesday. The global benchmark contract is trading at a $9.44 premium to WTI.
Source : Bloomberg