Higher oil inventories push prices down
But analysts say oil markets remain tight amid supply cuts led by Opec and as political tension escalates in the Middle East
London — Oil prices fell on Wednesday after industry data showed an increase in US crude inventories and on demand concerns linked to a protracted trade war between China and the US. However, analysts said oil markets remained tight amid supply cuts led by oil cartel Opec and as political tension escalates in the Middle East. Brent crude futures were down 70 US cents at $71.48 a barrel by 9.06am GMT and are set for their biggest daily fall in 11 days. US West Texas Intermediate (WTI) crude futures for July delivery were down 68c at $62.45. "Buying pressures are sandwiched between mounting geopolitical disruption risks in the Middle East and jitters over the fallout from the intensifying US-China trade dispute," PVM's Stephen Brennock said in a note. "As a result, the oil market is at a crossroad with both these risks carrying the potential to send prices $10 a barrel in either direction … Even a modest bout of profit taking could quickly cascade into a selling frenzy." In a trade wa...
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