Oil slips as industry report points to jump in US stockpiles

Oil edged lower as an industry report pointed to a rise in US crude stockpiles and investors fretted about weaker demand amid slowing growth.

West Texas Intermediate fell below $85 a barrel in early Asian trading after rising 0.9 per cent on Tuesday. The American Petroleum Institute reported US inventories rose by about 4.5 million barrels last week, according to people familiar with the figures. Government data follows later Wednesday, with the breakdown coming amid concern about product supplies including diesel.

While crude is on course for its first monthly gain since May as the Organization of Petroleum Exporting Countries and its allies including Moscow agreed to cut output, prices are still well down from the peak following the Russia-Ukraine crisis.

Investors are concerned about slowing demand as central banks raise interest rates to curb inflation. In addition, traders are focused on tightened European Union curbs on Russian flows from December.

To help rein in crude and gasoline prices, the Biden administration has released millions of barrels of crude from the nation’s strategic reserves.