Oil Steady as Demand Concerns Offset US Crude Stock Drawdown

Oil prices held steady on Wednesday as concerns about weaker demand offset industry data that showed a larger-than-expected drawdown in US crude stockpiles.
Brent crude futures were at $104.55 a barrel, up 15 cents, or 0.1%. US West Texas Intermediate crude rose 27 cents, or 0.5%, to $95.25 a barrel, Reuters reported.
After Tuesday's settlement, industry group the American Petroleum Institute said crude stocks in the United States fell by 4 million barrels last week.
That was four times bigger than the decline expected by analysts in a Reuters poll.
"A sharper decline in inventories should support oil prices, but the rebound was limited by concerns about potential weak demand, and the White House stated that it will further release strategic reserves," said Leon Li, a Shanghai-based analyst at CMC Markets.
In addition, the prospect of the US Federal Reserve announcing an aggressive rate rise later on Wednesday weighed on sentiment and limited the rise in oil prices, he added.
The US Federal Reserve is expected to raise interest rates by 75-basis-points later on Wednesday, underlining concern about the outlook for US demand and the prospect of a stronger dollar, which would make dollar-denominated commodities more expensive for buyers holding other currencies.