WASHINGTON (dpa-AFX) - Oil prices fell sharply on Wednesday as a report showed a rise in U.S. inventories and fears about the impact of sanctions on Venezuela started to fade.
Global benchmark Brent crude dropped nearly 1 percent to $61.39 a barrel while U.S. crude oil futures were down more than 1 percent at $53.12 a barrel.
The American Petroleum Institute reported late Tuesday that U.S. crude inventories rose by 2.5 million barrels last week at a time of weakening global demand.
Inventory data from the Energy Information Administration will be released later today.
Investors are also expecting that disruption to supplies from Venezuela will not be large in the long run.
Meanwhile, U.S. President Donald Trump's state of the union address failed to offer any plans to end an ongoing trade war with China.
Ahead of a fresh round of negotiations in Beijing next week, Trump said a new trade deal must include real structural change to end unfair trade practices, reduce chronic trade deficit and protect American jobs.
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