Oil Falls on Swelling US Stockpiles

Oil prices fell on Wednesday after a report showed a rise in US crude inventories, but global markets remained tense amid an intensifying political crisis in Venezuela, tightening US sanctions on Iran, and ongoing OPEC supply cuts.
Brent crude oil futures were at $71.52 per barrel, down 54 cents, or 0.8%, from their last close. US West Texas Intermediate crude futures were down 66 cents, or 1%, at $63.25 per barrel, CNBC reported.
Trading was thin as May 1 is a holiday in many markets. US crude stocks rose by 6.8 million barrels to 466.4 million barrels in the week to April 26, industry group the American Petroleum Institute said.
“Crude prices are off ... after the weekly API oil inventory report showed a build of 6.8 million barrels, up from the draw of 3.1 million barrels we saw last week,” said Edward Moya, senior market analyst at futures brokerage OANDA.
Market focus was shifting, however, to the crisis in major oil producer Venezuela, where there is a standoff between President Nicolas Maduro and opposition leader Juan Guaido. Many observers fear this could lead to escalating violence and further disruptions to crude supply.
Oil markets have already tightened this year due to supply cuts led by the Organization of the Petroleum Exporting Countries as well as US sanctions on Iran’s oil exports.