Brent, WTI Prices Fall

Brent, WTI Prices Fall
Brent, WTI Prices Fall

Oil prices fell on Wednesday, ending a three-day rally, as an unexpected rise in US oil inventories sparked demand concerns and investors awaited US inflation data to gauge the next rate decision in the top oil consuming nation.
Brent crude dropped 69 cents, or 0.9%, to $76.75 a barrel, while US West Texas Intermediate crude fell 67 cents, or 0.9%, to $73.04, Reuters reported.
In a possible sign of weakening demand, US crude inventories rose by about 3.6 million barrels in the week ended May 5, while gasoline stockpiles rose by 399,000 barrels, the American Petroleum Institute reported on Tuesday according to market sources.
The data defied expectations from eight analysts polled by Reuters for a 900,000-barrel drawdown in crude inventories and a 1.2 million-barrel drop in gasoline stocks. 
US government data on oil inventories is due on Wednesday.
The surprising US inventory build coupled with lower crude imports and softer export growth in China in April exacerbated worries about global oil demand.
"Oil investors should watch out for clues on the economic health of the US economy, which in my opinion looks very dim and bleak as of now," said Priyanka Sachdeva, analyst from Phillip Nova Pte Ltd.

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