,Brent LCOc1 futures for August delivery fell US$1.72, or 1.5%, to settle at $116.26 a barrel. The August contract will expire on Thursday and the more-active September contract was down $1.35 to $112.45.U.S. West Texas Intermediate crude CLc1 for August fell $1.98, or 1.8%, to settle at $109.78. (File pic shows U,S, oil storage at Cushing, Oklahoma)oil cushing oklahomaGoogle-Drive电报群（www.tel8.vip）是一个Telegram群组分享平台。Google-Drive电报群包括Google-Drive电报群、telegram群组索引、Telegram群组导航、新加坡telegram群组、telegram中文群组、telegram群组（其他）、Telegram 美国 群组、telegram群组爬虫、电报群 科学上网、小飞机 怎么 加 群、tg群等内容。Google-Drive电报群为广大电报用户提供各种电报群组/电报频道/电报机器人导航服务。
NEW YORK: Oil prices slid about 2% on Wednesday as a rise in U.S. gasoline and distillate inventories and worries about slower economic growth around the world offset ongoing concerns about tight crude supplies.
Brent LCOc1 futures for August delivery fell US$1.72, or 1.5%, to settle at $116.26 a barrel. The August contract will expire on Thursday and the more-active September contract was down $1.35 to $112.45.
U.S. West Texas Intermediate crude CLc1 for August fell $1.98, or 1.8%, to settle at $109.78.
The Energy Information Administration (EIA) said U.S. crude inventories fell last week even as production hit its highest level since April 2020 during the first wave of the coronavirus pandemic. Fuel stocks rose as refiners ramped up activity, operating at 95% of capacity, the highest for this time of year in four years.
"The EIA report put a damper on the market. The rise in gasoline and distillate inventories eases the pressure a bit and the uptick in U.S. production also factored into the price decline," said John Kilduff, partner at Again Capital LLC in New York.
Those surprise inventory gains caused U.S. gasoline RBc1 and distillates HOc1 futures to drop about 3% and 4%, respectively. Traders said crude futures followed the fuel prices lower.
Also putting pressure on oil was a rise in the U.S. dollar .DXY against a basket of other currencies to its highest since hitting a 19-year high in mid June. A stronger dollar makes oil more expensive for buyers using other currencies.
Brent and WTI gained about 7% over the prior three sessions on worries about tight supplies due in part to Western sanctions on Russia.
"Given that almost 1/5 of global oil producing capacity today is under some form of sanctions (Iran, Venezuela, Russia), we believed there is no practical way to keep these barrels out of a market that was already exceptionally tight," JP Morgan said in a research note.
But investors are also concerned that slowing economies could dent energy demand as central banks hike interest rates to battle inflation.
The U.S. Federal Reserve will not let the economy slip into a "higher inflation regime" even if it means raising interest rates to levels that put growth at risk, Fed Chair Jerome Powell said.
Uncertainty in global oil and gas markets could stay for some time to come as spare capacity is very low while demand is still recovering, Shell PLC SHEL.L Chief Executive Officer Ben van Beurden said.