Oil prices fell on Wednesday as industry data indicated an unexpected growth in U.S. oil stocks, signaling poor demand to anxious markets about recession and disappointing Chinese economic data.
By 0019 GMT, Brent crude futures fell 27 cents, or 0.4%, to $74.01. WTI crude fell 29 cents, or 0.4%, to $69.13 a barrel.
After China’s central bank lowered a short-term lending rate, both benchmarks rose above 3%. After poor economic statistics last week, prices plunged 4% on Monday.
Market sources citing American Petroleum Institute numbers on Tuesday reported that U.S. crude oil stocks rose by nearly 1 million barrels in the week ended June 9, contrary to the average Reuters analyst estimate for a 510,000 million barrel reduction.
Later today, government stockpile data is due.
Market traders eagerly watched a Federal Reserve meeting with no pre-determined interest rate hike. Rate hikes strengthen the dollar, making U.S.-denominated commodities more expensive for holders of other currencies and depressing prices.
Market sources citing American Petroleum Institute numbers on Tuesday reported that U.S. crude oil stocks rose by nearly 1 million barrels in the week ended June 9, contrary to the average Reuters analyst estimate for a 510,000 million barrel reduction.
Later today, government stockpile data is due.
Market traders eagerly watched a Federal Reserve meeting with no pre-determined interest rate hike. Rate hikes strengthen the dollar, making U.S.-denominated commodities more expensive for holders of other currencies and depressing prices.
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