Oil prices fall after industry data shows U.S. crude inventories rise

Sticker reads crude oil on the side of a storage tank in the Permian Basin in Mentone, Loving County, Texas, U.S. November 22, 2019. REUTERS/Angus Mordant

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  • API shows crude and distillate inventories rising and gasoline inventories falling
  • Ukraine halted oil flows to Europe due to payment issue
  • Coming soon: US government data on domestic crude inventories

Aug 10 (Reuters) – Oil prices fell slightly on Wednesday after industry data showed U.S. crude inventories rose unexpectedly last week, signaling a potential hiccup in demand.

U.S. crude inventories rose about 2.2 million barrels for the week ended Aug. 5, according to market sources citing figures from the American Petroleum Institute. Analysts had forecast a small drop of 400,000 barrels in crude inventories.

Official government data is expected Wednesday at 10:30 a.m. EDT.

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Brent futures fell 6 cents to $96.25 a barrel at 0002 GMT. U.S. West Texas Intermediate crude futures fell 16 cents to $90.34 a barrel.

Oil prices stabilized slightly lower on Tuesday after a choppy trading session that saw investors weigh recession fears with news that some oil exports had been suspended on the transiting Russia-Europe Druzhba pipeline. by Ukraine.

Ukraine halted oil flows on the Druzhba pipeline to parts of central Europe because Western sanctions prevented Moscow from paying transit fees.

Flows along the southern route of the Druzhba gas pipeline were affected while the northern route serving Poland and Germany was not interrupted. Read more

Czech Republic pipeline company MERO said it expected Russian oil supplies through the Druzhba pipeline to the Czech Republic to resume within days.

Although concerns about a possible global recession have weighed on oil futures recently, U.S. oil refiners and pipeline operators expect energy consumption to be strong for the second half of 2022, according to a Reuters review of corporate earnings calls. Read more

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Reporting by Stephanie Kelly in New York Editing by Shri Navaratnam

Our standards: The Thomson Reuters Trust Principles.

Stephanie Kelly

Thomson Reuters

New York-based correspondent covering the US crude market and member of the energy team since 2018 covering oil and fuel markets as well as federal renewable fuels policy.

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