(Bloomberg) — Oil fell for a second day after an industry report showed US crude stockpiles increased against a backdrop of concerns about global economic growth.
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West Texas Intermediate crude slid toward $66 a barrel. The American Petroleum Institute said nationwide inventories rose by 4.6 million barrels last week, although a draw was seen at the key hub in Cushing, Oklahoma. Official data are due later on Wednesday.
Investors will also watch for a Federal Reserve interest-rate decision, plus commentary from Chair Jerome Powell on the economy as President Donald Trump amps up his trade war. There’s been a risk-off tone in wider markets recently, particularly in equities.
Crude remains markedly lower from a peak in January, as several bearish drivers combine to pressure prices. On the supply side, OPEC and its allies are preparing to increase production, while the escalating trade frictions are threatening a hit to demand just as consumption in China remains weak.
Economic data “will remain the salient driving force of sentiment and consequently prices,” said Tamas Varga, an analyst at brokerage PVM Oil Associates Ltd. “The large build in US crude oil stocks, as seen by the API, is another hindrance to an upside reversal, albeit product inventories declined,” he added.
That has overshadowed geopolitical concerns that had lifted prices on Monday. Trump has pressed Iran to rein in the Houthis, treating attacks from the Yemeni militant group as Tehran’s direct responsibility. Russian President Vladimir Putin, meanwhile, declined the US president’s bid for a ceasefire in Ukraine, agreeing instead to limit attacks on the country’s energy infrastructure.
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