Oil prices fell on Wednesday after an industry report showed an unexpected build-up in U.S. oil inventories last week, which heightened worries about a resurgence in COVID-19 infections potentially dampening fuel demand.
Brent crude futures fell 36 cents, or 0.5%, to $68.98 a barrel at 0627 GMT, giving up some of Tuesday's 1.1% gain.
U.S. West Texas Intermediate (WTI) crude futures dropped 36 cents, or 0.5%, to $66.84 a barrel, after rising $1 on Tuesday.
The market "has come under a bit of downward pressure in early morning trading today after a bearish and rather surprising inventory report from the API," ING Economics analysts said in a note, referring to weekly figures from the American Petroleum Institute.
U.S. crude stocks rose by 806,000 barrels for the week that ended July 16, according to two market sources, citing American Petroleum Institute figures.
By comparison, 10 analysts polled by Reuters had estimated, on average, that crude stocks fell by about 4.5 million barrels.
Investors are awaiting data from the U.S. Energy Information Administration to see whether it confirms there was an increase in crude inventories, which would end an eight-week streak of inventory draw downs.
Reference: Reuters
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