Brent crude losses more than $1/bbl ahead of US inventories data

Oil rigs

Oil prices deepened losses on Wednesday, falling more than 2.5%, with Brent crude dropping below $67 a barrel (bbl) after it rose above $70 in the previous session.

International benchmark Brent crude was trading down 2.6%, or $1.76, at $66.95/bbl, at 4.10 pm Makkah time.

WTI crude fell 2.7% to $63.70/bbl.

The speculation that the Federal Reserve might raise rates because of inflation fears weighed on the outlook for growth and in turn on commodities demand, Reuters reported, citing Justin Smirk, senior economist at Westpec.

Data from the American Petroleum Institute revealed that oil inventories increased by 620,000 barrels in the week ending May 14, 2021.

Meanwhile, the Energy Information Administration is scheduled to announce the official data on US inventories later today.

Russian Deputy Prime Minister Alexander Novak said that oil prices ranging between $62 and $66 a barrel reflect the current market conditions.