WASHINGTON (dpa-AFX) - Crude oil prices drifted lower on Wednesday, pushing the most active WTI crude futures contracts to a three-week closing low, amid concerns about the outlook for demand from China due to rising Covid-19 cases.
Resumption of Russian oil shipments to Hungary via the Druzhba pipeline weighed as well. Supply to certain parts of Eastern and Central Europe via the pipeline had been suspended on Tuesday for technical reasongs.
Oil prices fell despite data showing a larger-than-expected drop in crude inventories in the U.S.
West Texas Intermediate Crude oil futures for December ended lower by $1.33 or about 1.5% at $85.59 a barrel.
Brent crude futures were down $1.00 or 1.07% at $92.86 a barrel a little while ago.
Data released by the Energy Information Administration (EIA) showed crude inventories dropped by 5.4 million barrels in the week ended November 11, as against expectations for a decline of 440,000 barrels.
Gasoline inventories increased by 2.2 million barrels last week, while distillate stockpiles saw an increase of 1.1 million barrels in the week.
The International Energy Agency (IEA) has warned of significant uncertainties on the oil market, noting China's weak economy, the energy crisis in Europe, and a firm U.S. dollar.
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