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Brent crude oil futures fell 16 cents, or 0.2%, to 68.80 barrels to 0123 GMT, and US West Texas Intermediate (WTI) crude oil futures fell 20 cents, or 0.3%, to 65.43 USD per barrel.
Both Brent and US crude oil futures hit their highest levels since mid-March on Wednesday before pulling back. The $ 70 a barrel mark has been a drag on the market since Brent was just above that level in March. Investors were unwilling to increase the oil as COVID-19 cases spike in parts of the world.
“Oil prices fell in response to the surge in US gasoline inventories,” Commonwealth Bank of Australia analysts said in a note. However, they said the drop in prices was not justified as US demand remained strong.
US crude oil inventories fell more than expected last week as refinery production rose and exports rose, the Energy Information Administration said on Wednesday.
Crude oil inventories declined 8 million barrels to 485.1 million barrels in the week ended April 30, compared with a Reuters poll forecast for a 2.3 million barrels decrease.
U.S. gasoline inventories rose 737,000 barrels for the week, the MSRP said, versus a forecast of 652,000 barrels draw.
Pandemic restrictions in the US and parts of Europe are easing, but infections at major crude oil importers India and Japan continue to mount and weigh on prices.
Meanwhile, bombing militants attacked two oil wells in an oil field near the northern Iraqi city of Kirkuk, killing at least one police officer and setting fire to, the country’s oil ministry said.
Industry sources said the attack did not affect production. The production was not commented on in a statement from the Ministry of Oil.
(Reporting by Jessica Jaganathan; Editing by Tom Hogue)
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