Oil falls on rising US inventories, supply fears limit losses

Oil prices fell on Wednesday after industry data showed that crude stocks in the United States rose more than expected, but supply concerns limited losses.

Brent crude futures for December were down 72 cents, or 0.8 percent, at $92.80 a barrel by 0330 GMT, after closing up 26 cents in the previous session.

And futures contracts for US light sweet crude for December delivery fell 48 cents, or 0.6 percent, to $ 84.84, reversing the previous session’s gains.

“The possibility of a global economic slowdown and monetary tightening outweighs the specter of supply cuts in recent weeks,” ANZ Research analysts said in a note.

US crude stocks rose by about 4.5 million barrels in the week ending October 21, according to market sources, citing figures from the American Petroleum Institute.

While the increase in crude inventories has fueled fears of a global recession that will reduce demand, persistent supply constraints keep prices trading in a narrow range.

US President Joe Biden announced last week a plan to sell the remaining record withdrawals from the Strategic Petroleum Reserve by the end of the year in an effort to reduce high gasoline prices.