Oil fell as an industry report signaling a jump in U.S. stockpiles eased concerns over a supply crunch, even after a drone attack in Saudi Arabia highlighted the vulnerability of the country’s energy infrastructure.
Futures in New York declined 1% after closing up 1.2% on Tuesday. The American Petroleum Institute was said to report an 8.63 million-barrel weekly increase in crude inventories, calming supply fears after a Yemeni rebel attack on two Saudi pumping stations forced the kingdom to suspend its main cross-country crude link. In a further sign of tensions in the Persian Gulf, the U.S. ordered all non-emergency American government staff to leave Iraq.
Oil has swung between gains and losses this month as investors weigh an increasingly tense situation in the Gulf and supply disruptions in other OPEC nations against an escalating U.S.-China trade war that threatens to curb crude consumption. The International Energy Agency on Wednesday cut its demand-growth forecast, citing weak economic data in Asia.
West Texas Intermediate crude for June delivery fell 64 cents, or 1%, to $61.14 a barrel on the New York Mercantile Exchange at 8:32 a.m. local time. It dropped as much as 93 cents earlier, after closing up 74 cents on Tuesday.
Brent for July settlement was down 45 cents, or 0.6%, at $70.79 a barrel on the London-based ICE Futures Europe exchange after advancing 1.4% on Tuesday. The global benchmark contract traded at a $9.44 premium to WTI.
Source : Bloomberg