Oil prices fall as crude inventories build up

WASHINGTON (dpa-AFX) – Oil prices fell about 1 percent on Wednesday as industry data indicated a rise in US oil inventories and the Biden administration renewed efforts to broker a ceasefire in the Central -to establish the East.

A firmer dollar also weighed on prices as traders pondered the prospect of a Donald Trump presidency.

There are fears that Trump’s policies, including tariffs and restrictions on undocumented immigration, could increase inflation and keep interest rates relatively high for a longer than expected period.

Benchmark Brent crude futures fell 0.9 percent to $75.34 per barrel in European trading, while WTI crude futures fell 1 percent to $71 per barrel.

The U.S. dollar has hovered around a two-and-a-half-month peak after Fed officials sounded a cautious tone on the pace of future rate cuts.

The American Petroleum Institute report shows that U.S. crude inventories increased by 1.6 million barrels in the week ended Oct. 18, despite a 216,000 barrel drop in inventories at the Cushing delivery center.

Gasoline inventories showed a decline of 2.02 million barrels during the week, while distillate inventories – including diesel and heating oil – fell by about 1.5 million barrels.

The Energy Information Administration will release its weekly U.S. oil supply report later today.

On the geopolitical front, the US is once again trying to broker a ceasefire agreement between Israel and Hamas in the Middle East.

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