Oil prices edged higher on Wednesday following a recent drop, buoyed by a decrease in U.S. oil inventories despite concerns over weakening demand from China. Brent crude futures rose by 27 cents to $84.00 per barrel by 0800 GMT, while U.S. West Texas Intermediate crude futures increased by 35 cents to $81.11. This uptick comes after both benchmarks experienced declines over the past three sessions, with Brent hitting $83.30 on Tuesday, its lowest level since June 17.
In the United States, the world’s largest oil producer and consumer, crude oil stocks reportedly fell by 4.4 million barrels in the week ending July 12, according to sources citing data from the American Petroleum Institute. Analysts, who had expected a modest decrease of 33,000 barrels, await the official report from the U.S. Energy Information Administration due later today at 1430 GMT.
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“The government’s data this afternoon will provide a clearer picture, but preliminary figures from the API show limited impact from Hurricane Beryl and related infrastructure closures,” noted PVM Oil analyst John Evans.