Oil fell for the first time this week after US government data showed a rise in crude inventories.
West Texas Intermediate settled below $73 on Wednesday, halting a rally that began late last week. Inventories at the main US storage center rose to the highest since March, while total inventories rose slightly. Traders were encouraged by increased demand for fuel, but not enough to extend the rally of previous sessions.
“Crude oil prices remain heavy on rising inventories,” said Ed Moya, senior market analyst at Oanda. “The US economy is still headed for a recession and debt ceiling stress could keep oil heavy in the near term.”
Crude has retreated this year as concerns about Fed tightening and a possible US recession outweigh a still-strong physical market and supply cuts from the Organization of the Petroleum Exporting Countries and its allies .
US inflation eased slightly in April, which could give the Federal Reserve room to stop interest rate hikes early. But uncertainty over the timing of that moderation muted the influence of the data on oil prices.
Prices:
- WTI for June delivery fell $1.15 to settle at $72.56 a barrel in New York.
- Brent for July settlement was down $1.03 at $76.41 a barrel.
