Brent crude falls 1% amid demand concerns

Oil closed lower today, Aug. 29, as US crude inventories fell less than expected during the week ended Aug. 23 and concerns about demand from China. 

Brent crude futures for October delivery fell 1.15%, or 90 cents, to settle at $78.65 a barrel. 

WTI crude for October delivery fell by 1.35%, or $1.01, to $74.52 per barrel. 

The US Energy Information Administration data revealed that commercial oil inventories fell by 800,000 barrels last week, compared to the expectations of a 2.7 million barrel decline. Gasoline inventories fell by 2.2 million barrels, while distillate inventories increased by about 300,000 barrels. 

The weekly report indicated that US crude production decreased by about 100,000 barrels to 13.3 million barrels per day, with crude imports declining by about 92,000 barrels per day to 6.6 million barrels per day. Exports fell 374,000 barrels per day to 3.7 million barrels per day. 

Meanwhile, the renewed geopolitical tensions and fears of an escalation of the conflict in the Middle East offered support to oil prices. The conflict raised the insurance premium on oil tankers in the Red Sea following renewed attacks on them. 

This coincided with the halting of production at many oil fields in Libya due to the conflict between government factions.