Oil falls as US crude stocks rise and Middle East tensions subside
Shafaq News/Oil prices slipped on Wednesday on estimates showing swelling US crudeinventories and expectations that tensions in the Middle East were easingfollowing a tour of the region by mediators.
Brent crudefutures fell 9 cents, or 0.1%, to $77.11 a barrel by 0340 GMT. US West TexasIntermediate crude dipped 12 cents, or 0.2%, to $73.05 per barrel.
US crude oilstocks were seen rising last week by 347,000 barrels, according to marketsources citing American Petroleum Institute figures on Tuesday. Gasoline anddistillate stocks, however, fell by 1.043 million barrels and 2.247 millionbarrels respectively, according to the sources.
The UnitedStates is the world's biggest producer and consumer of oil, and growinginventories point to oversupply that could hinder prices.
Official USgovernment inventory estimates are set to be released on Wednesday at 10:30a.m. local time.
Meanwhile, USSecretary of State Antony Blinken wrapped up a trip to the Middle East intendedto help broker a ceasefire agreement in Gaza.
Blinken andmediators from Egypt and Qatar have raised hopes for a US "bridgingproposal," which could shrink the gaps between the two sides in the10-month-old war.
"Hopesof a cease-fire between Israel and Hamas have weighed on oil, along withlingering demand concerns," ING commodities strategists said.
"Whileweaker Chinese demand has been well reported, refinery margins around the globehave been under pressure for much of August, suggesting that these demandconcerns are not isolated to just China," they said.
The economicstruggles in top crude importer China have continued to hobble the market, asweak processing margins and low fuel demand curbed operations at state-run andindependent refineries.
Imports ofcrude oil from top supplier Russia fell in July by 7.4% from a year ago, whilefuel oil imports retreated for a third straight month, customs data showed thisweek.
(Reuters)
