Oil prices fell on Wednesday as traders eyed a potential jump in U.S. crude inventories, while OPEC lowered its oil supply growth forecast for producers outside OPEC+.
Brent crude futures fell 75 cents, or around 1.1%, to $65.88 a barrel by 1206 GMT. U.S. West Texas Intermediate (WTI) crude slipped 75 cents, or 1.2%, to $62.92.
OPEC on Wednesday trimmed its forecast for growth in oil supply from the United States and other producers outside the wider OPEC+ group this year. Supply from countries outside OPEC+ will rise by about 800,000 barrels per day in 2025, down from last month's forecast of 900,000 bpd, the Organization of the Petroleum Exporting Countries said on Wednesday.
"Definitely, the crude build in the API numbers was not of help. That said, the API report also contained supportive elements such as large refined product draws," said UBS analyst Giovanni Staunovo.
Crude stocks were up by 4.3 million barrels in the week ended May 9, market sources said, citing American Petroleum Institute figures, while gasoline inventories fell by 1.4 million barrels and distillate stocks dropped by 3.7 million barrels.
The fall in gasoline inventories comes as countries get ready to enter the Northern Hemisphere summer driving season.
Roth Capital Markets analysts in a note late on Tuesday said that the draw in products shown in API data was positive for the oil complex in the longer term as it shows that the oil market was under-supplied.
Official weekly inventory data from the U.S. Energy Information Administration is due on Wednesday at 10:30 a.m. EDT (1430 GMT).
U.S. crude oil and gasoline stocks likely fell last week, distillate inventories likely rose and gasoline stocks potentially decreased, an extended Reuters poll found ahead of the data.
Broadly, both crude benchmarks were trading close to two-week highs touched in the previous session.
"Oil had a good rally in recent days...so we are probably seeing some profit taking," Staunovo added.
However, upside in prices was limited as concerns about demand remained.
Chicago Fed president Austan Goolsbee said on Wednesday that data showing temperate consumer inflation in April does not necessarily reflect the impact of rising U.S. import tariffs, and more data was needed to understand the direction of prices and the economy.
Source: Reuters
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