Oil prices edge lower on rising US stockpiles

Brent crude oil price news: Oil prices fell in early Asian trading hours on Wednesday after market sources said that data from the American Petroleum Institute showed an increase in US crude and fuel stockpiles, an indicator of weak demand.

Brent crude oil futures fell 21 cents, or 0.3 per cent, to $82.95 a barrel by 0020 GMT. US West Texas Intermediate crude futures fell 13 cents, or 0.2 per cent, to $78.25 a barrel.

US crude stocks rose by 509,000 barrels in the week ended May 3, market sources said citing American Petroleum Institute figures. Gasoline and distillate fuel inventories also rose, they said.

Official US government data on stockpiles is due at 1430 GMT. Analysts polled by Reuters expect US crude oil inventories to have fallen by about 1.1 million barrels last week. Both benchmarks fell marginally in the previous session on signs of easing supply tightness. The EIA updated its forecasts for 2024 and now expects world oil and liquids output to grow more this year than earlier projections, and demand to grow less than it previously thought.

Hopes of a ceasefire in Gaza have also put pressure on oil prices in recent sessions. The US believes negotiations on a Gaza ceasefire should be able to close the gaps between Israel and Hamas. US Central Intelligence Agency Director Bill Burns will travel to Israel on Wednesday for talks with the Israeli Prime Minister Benjamin Netanyahu and other top officials, a source familiar with the matter told Reuters.

Also weighing on oil, the US dollar edged higher on Wednesday. A stronger greenback dampens oil demand by making it more expensive for investors holding other currencies.