Oil prices fell on Wednesday, after a surprise rise in US crude inventories raised concerns about demand in the wake of weaker-than-expected economic data from the United States and China, the world’s two largest oil consumers.
Brent crude futures fell 0.07%, to $74.86 a barrel, and US West Texas Intermediate crude fell 0.1%, to $70.79.
US crude inventories rose by about 3.6 million barrels in the week ending May 12, according to market sources citing American Petroleum Institute figures.
This added to growth concerns in the United States, sparked by data showing retail sales rose 0.4% in April, less than estimates for a 0.8% increase.
“The global economic outlook has a lot of question marks and this does not give energy traders much confidence in buying crude oil. There is still plenty of oil available at the moment,” OANDA senior market analyst Edward Moya said in a note.
Talks about raising the US debt ceiling continue to influence the market, and the US Treasury has estimated that the US will default as early as June 1 if Congress does not raise the debt ceiling.
In China, industrial production and retail sales for April grew below expectations, indicating that the economy has lost momentum at the start of the second quarter.
