After weaker-than-expected economic data from the world’s two major oil customers, the United States and China, oil prices fell again on Wednesday.
Brent futures fell 49 cents, or 0.7%, to $74.42. At 0657 GMT, WTI crude fell 55 cents, or 0.8%, to $70.84.
“Global demand concerns keep crude prices high. “The current situation is too disappointing,” said OANDA analyst Edward Moya.
Market sources citing American Petroleum Institute numbers reported a 3.6 million-barrel increase in U.S. oil stocks in the week ended May 12. Conversely, seven Reuters experts predicted a 900,000-barrel drawdown.
The U.S. government releases crude and product stockpile figures at 1430 GMT.
After April retail sales fell 0.4% short of expectations, the crude inventory surge raised concerns about U.S. growth.
The U.S. debt ceiling debate weighs on the market. If Congress does not raise the limit, the Treasury Department predicts a catastrophic default on June 1.
April industrial output and retail sales growth in China were below expectations, suggesting the economy lost impetus in the second quarter.
Stalled U.S. debt ceiling talks and weak retailers’ profits depressed sentiment overnight. “Recession fears again dragged on global markets,” said CMC Markets analyst Tina Teng.
The Group of Seven (G7) leaders’ May 19-21 meeting in Japan will be widely watched for further Russia sanctions.
Officials with firsthand knowledge of the conversations said the G7 targets third-country sanctions evasion to limit Russia’s future energy production and military trade.
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