Reuters: Oil falls as U.S. inventories swell, economic growth slows

08:55, 01 August 2018
Economy
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REUTERS

Brent spot crude oil futures dropped 30 cents, or 0.4 percent, to $73.91 a barrel by 0435 GMT, adding to a 1.8 percent loss in the previous session, Reuters said.

Read alsoReuters: Oil prices drop on oversupply concerns as OPEC output increased in July

U.S. crude futures were down 38 cents, or 0.6 percent, at $68.38 a barrel, having dropped nearly 2 percent on Tuesday.

Brent fell more than 6 percent in July, while U.S. crude futures slumped about 7 percent, the biggest monthly declines for both benchmarks since July 2016.

Weighing on prices was a report by the American Petroleum Institute (API) that showed domestic crude inventories rose by 5.6 million barrels last week. A Reuters poll had forecast a fall of 2.8 million barrels.

Official data from the U.S. Energy Information Administration (EIA) is due later on Wednesday.

Signs that a supply disruption in the Bab al-Mandeb Strait in the Red Sea could be resolved also weighed on prices.

Yemen's Houthi group said it was ready to halt attacks in the Red Sea to support peace efforts. Saudi Arabia suspended oil shipments through the strait last week after the Houthis attacked two Saudi oil tankers.

Prices are also falling in the physical market, where top oil exporter Saudi Arabia is expected to cut prices for all crude grades going to Asia in August, according to several market participants on Wednesday.

Markets are also being pulled lower by concerns over slowing economic growth because of the trade dispute that is still ramping up between the United States and China.

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