WASHINGTON (dpa-AFX) - Despite data showing a drop in U.S. crude inventories last week, oil prices fell on Wednesday, extending losses from the previous session, amid concerns about outlook for energy demand, and on Fed Chair Jerome Powell's remarks in his testimony to Congress that interest rates will likely remain higher for longer than expected.
West Texas Intermediate Crude oil futures for April ended lower by $0.92 or about 1.2% at $76.66 a barrel.
Brent crude futures settled at $82.66 a barrel today, down $0.63 or about 0.8%.
Data released by U.S. Energy Information Administration (EIA) this morning showed crude stockpiles in the U.S. fell for the first time last week after rising for 10 straight weeks.
The EIA data showed crude inventories in U.S. dropped by 1.694 million barrels last week, as against expectations for an increase of 0.395 million barrels.
Gasoline inventory dropped 1.134 million barrels last week, lower than an expected decline of 1.863 million barrels, while distillate stockpiles increased by 0.138 million barrels, as against expectations for a 1.038 million barrels drop.
'The amount of crude demand uncertainty over the short-term is keeping oil prices heavy. WTI crude looks like it will be stuck between the mid-$70s and the low $80s until we have a better idea on what type of recession the Fed will trigger,' says Edward Moya, Senior Analyst, OANDA.
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