Oil declined amid persistent concerns over the demand outlook following a short-lived bounce on Saudi Arabia's pledge to cut more supply.
West Texas Intermediate futures dropped toward $71 a barrel after closing 0.6% lower Tuesday. The US sees its oil consumption this year growing at half the rate of 2022 due to waning diesel use, according to a government report. Trade data from China on Wednesday also reflected weaker global demand.
Oil has lost around 12% this year as a sluggish Chinese recovery and aggressive monetary policy from the Federal Reserve weighed on demand. Russian crude flows are still high even after the nation said it would reduce supply, spurring Saudi Arabia to call on Moscow to be more transparent with its data.
WTI for July delivery fell 0.3% to $71.50 a barrel as of 11:30 a.m. in Singapore.
Brent for August settlement dropped 0.4% to $76.02 a barrel.
Source : Bloomberg
