West Texas Intermediate (WTI) crude oil closed lower on Wednesday, giving up early gains as a report showed a rise in U.S. oil inventories last week, even as U.S. inflation eased last month and Middle East tensions continue to run hot.
WTI oil for September delivery closed $1.37 to US$76.98 per barrel, while October Brent crude, the global benchmark, was last seen US$1.00to US$79.69.
In its weekly survey, the Energy Information Administration reported U.S. oil inventories last week rose by 1.4-million barrels, contrary to a consensus estimate for a two-million barrel drop and a Tuesday survey from the American Petroleum Institute that showed a 5.21-million barrel drop.
The U.S. Bureau of Labor Statistics reported the July Consumer Price Index (CPI) fell to a 2.9% annualized pace from 3.0% in June and the consensus estimate for a 3.0% rise, according to Marketwatch. Core CPI, which excludes volatile food and energy, ran at a 3.2% pace last month, matching the consensus estimate and down from 3.3% in June.
The data follows on Tuesday's release of the July Producer Price Index (PPI) which also showed a lower than expected rise, firming market hopes the Federal Reserve will begin to cut interest rates at the September meeting of its policy committee.
Source : MT Newswires
