Petroleum prices gave up its earlier gains on Wednesday as concerns over further interest rate hikes and slowing demand offset support from an industry report showing a larger-than-expected drop in U.S. crude inventories.
Benchmark Brent crude prices are down more than 15% this year as rising interest rates hit investor appetite, while China’s economic recovery has faltered after several months of softer-than-expected consumption and other data.
Brent was last down 44 cents, or 0.61%, to $71.82 a barrel, while U.S. West Texas Intermediate crude slipped 46 cents to $67.24.
Oil had surged earlier in the session, finding support from American Petroleum Institute data showing U.S. crude inventories fell by about 2.4 million barrels. The Energy Information Administration’s official supply report is due out later on Wednesday.
While outright prices were mixed, the discount of the prompt Brent contract to the next month has deepened, a structure called contango which indicates ample supply.
