MELBOURNE: Oil prices fell on Wednesday after an industry report showed an unexpected build-up in US oil inventories last week, which heightened worries about a resurgence in Covid-19 infections potentially dampening fuel demand.
US West Texas Intermediate (WTI) crude futures dropped 35 cents, or 0.5 per cent to $66.85 a barrel after rising $1 on Tuesday.
Brent crude futures fell 32 cents, or 0.5 per cent to $69.03 a barrel, giving up some of Tuesday’s 1.1 per cent gain.
US crude stocks rose by 806,000 barrels for the week that ended 16 July, according to two market sources, citing American Petroleum Institute figures.
Investors are awaiting data from the US Energy Information Administration to see whether it confirms there was an increase in crude inventories, which would end an eight-week streak of inventory drawdowns.