WASHINGTON (dpa-AFX) - Despite a decrease by US crude oil inventories, the price of crude oil dropped for the third straight day on Wednesday amid fears over US tariffs leading to slow economic growth.
Today, WTI Crude Oil for August delivery edged down by $0.14 to settle at $65.38 per barrel.
September month Brent Crude contract was last seen trading down by $0.02 to $68.69 per barrel.
The Energy Information Administration released a report today revealing crude oil inventories slid by 3.9 million barrels last week after jumping by 7.1 million barrels in the previous week. Economists had expected crude oil inventories to dip by around 1.8 million barrels.
However, the report also said gasoline inventories increased by 3.4 million barrels last week and are slightly above the five-year average for this time of year.
Distillate fuel inventories, which include heating oil and diesel, also shot up by 4.2 million barrels last week but remain about 21 percent below the five-year average for this time of year, the EIA said.
Earlier in the week, the spike in oil prices after US President Donald Trump hinted about a significant announcement on Russia subsided after he chose to provide Russia with a 50-day grace period to resolve the Ukraine conflict instead of imposing any immediate sanctions.
A seasonal surge in US gasoline consumption and stronger-than-expected China's Q2 GDP growth eased concerns over energy demand.
In its latest monthly outlook, OPEC+ held on to its global demand forecast despite increasing output levels.
OPEC expects global refinery throughput to stay elevated as travel demand lifts gasoline consumption. On July 5, OPEC+ agreed to raise production by 5,48,000 barrels per day in August.
The International Energy Agency last week trimmed its demand forecasts.
According to the American Petroleum Institute's data released Tuesday, US crude oil inventories unexpectedly surged by 19.1 million barrels in the week ending July 11 following a 7.1 million-barrel build in the previous week.
On the trade front, countries are focused on negotiating balanced trade deals with the US as the extension of 'reciprocal tariff' suspension period up to August 1 is just a fortnight away.
On the geopolitical front, the Red Sea attacks carried out by Yemen's Houthi rebels on two bulk carriers in the beginning of last week has silently triggered concerns of a new conflict. However, the US and the West have so far refrained from any retaliation.
Oil prices could move upwards if and when the US and its allies intervene, as it could cause severe strain in the supply-and-transit chain.
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