WASHINGTON (dpa-AFX) - Oil prices traded lower on Wednesday after analysts said China's most aggressive economic stimulus since the COVID-19 may not be enough to drive more fuel demand growth in the world's second-largest economy and that there should be a more concrete fiscal approach to tackle economic headwinds.
Benchmark Brent crude futures fell 0.7 percent to $73.95 a barrel, while WTI crude futures were down 0.6 percent at $71.13.
Weak U.S. data released overnight also weighed on prices while the downside was capped by escalating Middle East tensions and industry data showing a larger-than-expected crude draw.
A slew of data showed on Tuesday that U.S. consumer confidence unexpectedly fell the most in three years in September, house-price growth slowed in July and factory activity slumped more sharply in the mid-Atlantic region this month.
The weak data bolstered the case for deeper rate cuts by the U.S. Federal Reserve.
Meanwhile, the American Petroleum Institute reported that U.S. crude inventories decreased by 4.3 million barrels for the week ended Sept. 20, compared with a build of 2M barrels reported for the previous week.
Gasoline inventories dropped by 3.44 million barrels last week and distillate stocks were down by 1.1 million barrels.
The official government inventory report from the Energy Information Administration (EIA) is due later in the session.
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