Oil prices fell on Wednesday after a rise in U.S crude inventories and amid concerns over global demand.
The downside, however, remained limited in view of an intensifying crisis in Venezuela and tightened U.S. sanctions on Iran.
Benchmark Brent crude slid 0.15 percent to $71.95 per barrel while U.S. crude futures dropped 0.6 percent to $63.51 per barrel.
On Tuesday, the American Petroleum Institute (API) reported a surprise build in crude oil inventory of 6.8 million barrels for the week ending April 26, compared with analysts’ expectations for a 2.09-million-barrel buildup in inventories.
The all-important EIA crude stockpiles report will be released later in the day.
Markets also keep a close eye on the latest events in Venezuela amid mass protests against the government.
Hundreds of Venezuelans rallied on Tuesday after opposition leader Juan Guaido called for a “military uprising” in his strongest move to remove President Nicolas Maduro since declaring himself interim president earlier this year.
Many observers fear this could lead to escalating violence and further disruptions to crude supply.
Meanwhile, the latest U.S. sanctions on import of Iranian crude come into effect on May 2 and it remains to be seen whether there will be a modest waiver extension.
The material has been provided by InstaForex Company – www.instaforex.com