Oil held a two-day drop as concerns about waning demand in top importer China were tempered by an industry-funded report pointing to a decline in US inventories.
West Texas Intermediate futures traded below $80 a barrel, after declining by 1.3% over the previous two days. The dour outlook in China continues to weigh on sentiment. The industry-funded American Petroleum Institute said nationwide stockpiles fell 2.4 million barrels last week, a bullish signal if confirmed by official data later Wednesday.
Crude’s rally since late June has faltered over the last couple of weeks as a worsening macroeconomic outlook outweighed a tightening market following supply cuts from OPEC+ kingpins Saudi Arabia and Russia. Futures are now trading just below where they were at the start of the year.
To get Bloomberg’s Energy Daily newsletter direct into your inbox, click here.
