Oil prices fell on Wednesday on forecasts that US crude inventories were swelling and expectations that tensions in the Middle East were easing.
Brent crude futures fell 11 cents, or 0.1%, to $77.09 a barrel by 0630 GMT. WTI crude fell 14 cents, or 0.2%, to $73.03.
On Tuesday, figures from the American Petroleum Institute (API) showed that US crude inventories rose by 347,000 barrels last week. The sources said that gasoline and distillate inventories fell by 1.043 million barrels and 2.247 million barrels, respectively.
The US is the world’s largest producer and consumer of oil, and rising inventories point to oversupply that could weigh on prices.
Official U.S. government inventory estimates are due at 10:30 a.m. Wednesday.
Meanwhile, Blinken wrapped up a trip to the Middle East to broker a ceasefire in Gaza. Blinken and mediators from Egypt and Qatar raised hopes for a U.S. “bridge proposal” that could narrow the gap between the two sides in the 10-month war.
Hopes for a ceasefire between Israel and Hamas weighed on oil and ongoing demand concerns.
Economic struggles in top crude importer China continued to weigh on the market, with weak processing margins and lower fuel demand curtailing operations at state-run and independent refineries.
Refining margins around the world were under pressure for much of August, suggesting that demand concerns are not limited to China.
Crude oil imports from top supplier Russia fell 7.4% in July from a year earlier, while fuel oil imports fell for a third straight month, customs data showed this week.
