WASHINGTON (dpa-AFX) - Oil prices fell slightly on Wednesday after climbing to a seven-week high the previous day on signs of escalating geopolitical tensions in Europe and the Middle East.
Benchmark Brent crude futures dipped 0.2 percent to $85.13 a barrel, while WTI crude futures were down 0.2 percent at $80.53.
Investors fretted about sluggish demand growth after industry data showed a surprise build in U.S. crude oil inventories last week.
The American Petroleum Institute reported that crude oil inventories in the United States rose by 2.264 million barrels in the week ending June 14, compared with an expected draw of 2.2 million barrels.
Gasoline inventories fell by 1.077 million barrels this week, while distillate inventories rose by 538,000 barrels.
Official inventory data from the U.S. Energy Information Administration will be released on Thursday, delayed a day due to the Juneteenth holiday.
On the geopolitical front, Ukrainian forces have launched a drone attack that set several oil storage tanks ablaze near the town of Azov in southern Russia, posing a threat to physical global supply and boosting the risk premium priced into crude futures.
Elsewhere, Israeli Foreign Minister Israel Katz said that the Iran-backed Hezbollah movement would be destroyed in the event of a 'total war'.
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