Oil fell with risk assets ahead of a critical U.S. inflation report and as investors digested a mixed report on supplies from an industry group.
West Texas Intermediate sank toward US$73 a barrel after jumping 7.5 per cent over the previous three sessions as the White House said it would begin purchasing crude to replenish the emergency reserves after maintenance work later this year. Gains were also supported by wildfires in Canada that have cut output.
Crude has retreated this year as worries over Fed tightening and a potential U.S. recession outweighed a solid physical market and supply cuts by the Organization of Petroleum Exporting Countries and its allies. Still, Russian exports have continued to show little sign of ebbing despite Moscow saying its output curbs had almost hit a pledged goal of 500,000 barrels a day.
The industry-funded report on oil supplies showed a mixed picture in the U.S. ahead of official data. Nationwide oil stockpiles rose 3.6 million barrels last week, but inventories fell at the key Cushing, Oklahoma hub, the American Petroleum Institute reported, according to people familiar with the figures. The snapshot also pointed to rising gasoline holdings but a drop for distillates.Brent for July settlement eased 0.7 per cent to US$76.87 a barrel.
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