Petroleum prices weakened slightly on Wednesday as an industry report showed higher crude inventories in the United States, reinforcing concerns about oversupply, though price declines were limited by a tighter fuel market because of attacks against Russian oil infrastructure.
Brent crude futures eased 44 cents, or 0.68%, to $64.45 U.S. a barrel, after gaining 1.1% in the previous session. U.S. West Texas Intermediate crude futures were down 46 cents, or 0.76%, at $60.28 a barrel, after rising 1.4% on Tuesday.
One industry expert said prices rose on Tuesday because of a tighter diesel market on the back of lower Russian exports.
U.S. crude stocks rose by 4.45 million barrels in the week ended November 14, while gasoline inventories climbed by 1.55 million barrels and distillate inventories increased by 577,000 barrels, market sources said late on Tuesday, citing American Petroleum Institute figures.
U.S. sanctions on major Russian producers Rosneft and Lukoil set a November 21 deadline for companies to unwind their dealings with the Russian firms.
On Monday the U.S. Treasury said the sanctions, already squeezing Russia’s oil revenue, are expected to curb its export volumes. Crude buyers in China and India have already started switching to alternative suppliers.
Concerns about Russian supply are being weighed against analysts’ forecasts that oil output is in excess of current demand, which has put pressure on prices.
