Oil is falling amid anticipation of inflation data in America and fears of demand

Oil prices fell on Thursday, after hitting multi-month highs in the previous session, as rising crude inventories in the United States and weak economic data from China added to concerns about global fuel demand.

Brent crude fell nine cents, or 0.1 percent, to $87.46 a barrel by 0408 GMT, after settling in the previous session, its highest level since Jan. 27.

West Texas Intermediate crude fell six cents, or 0.1%, to $84.34, after settling on Wednesday, its highest level since November 2022.

US Energy Information Administration data showed on Wednesday that crude inventories rose by 5.9 million barrels last week to 445.6 million barrels, compared to analysts’ expectations in a Reuters poll, an increase of 0.6 million barrels.

Weak economic data from China affected market sentiment. This data included a decline in consumer prices at a time when factory prices continued to decline in July.

Investors are awaiting consumer price data in the United States for the month of July, which is due to be published on Thursday. This data may provide indications of the monetary policy that the Federal Reserve will adopt in the coming period.

Nevertheless, oil prices remained supported by fears of supply shortages, as well as the possibility that tensions between Russia and Ukraine in the Black Sea would affect Russian oil shipments.