London: A weakening global economic growth outlook and a report of rising United States crude inventories weighed on oil prices on Wednesday, even as US sanctions threatened to curb Iranian crude supplies.
Benchmark Brent crude oil was down 60 cents a barrel at $71.86 by 1040 GMT, while US light crude fell $1.02 a barrel to a low of $66.02, before recovering slightly to around $66.30, down 74 cents.
“Oil bears are taking their turn in the driving seat,” said Stephen Brennock, analyst at London broker PVM Oil Associates.
“Adding to the weakening price backdrop are signs that a deepening trade spat between the United States and China is undermining oil demand.”
US crude stocks rose by 3.7 million barrels in the week to August 10, to 410.8 million barrels, private industry group the American Petroleum Institute (API) said on Tuesday. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.6 million barrels, the API said.
Official US oil inventory data was due to be published later on Wednesday by the Energy Information Administration.
