MELBOURNE : Oil prices fell in early trade on Wednesday after industry data showed a big build in U.S. crude inventories, rather than the decline forecast by analysts, reinforcing fears about weakening demand even as supply tightens.
Product stocks also jumped, with gasoline inventories up by about 900,000 barrels and distillate stocks up by 3.4 million barrels, API data showed. The inventory data defied bullish sentiment which sent the market up 3 per cent in the previous session on hopes of a revival in Chinese demand with the easing of COVID-19 restrictions and on a weakening dollar after data showed U.S. inflation subsiding.
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