Oil prices slipped more than $1 on Wednesday as likely higher US commercial inventories weighed, while weaker economic data from China and dimmed prospects of interest rate cuts stoked worries about global demand.
Brent futures for June were down $1.21, or 1.3 per cent, to $88.81 a barrel at 1330 GMT, while US crude futures for May were down $1.11, or 1.3 per cent, to $84.25 a barrel. Both were on track for their biggest fall since March 20 if losses hold.
Oil prices have softened this week as economic headwinds curb gains from geopolitical tensions, with markets eyeing how Israel might respond to Iran’s weekend attack.
Analysts do not expect Iran’s unprecedented missile and drone strike on Israel to prompt dramatic sanctions from the United States on Iran’s oil exports.
“Oil prices go about their business of unwinding some of the war premium that has been priced-in,” said John Evans at oil broker PVM, adding that they also faced “a setback in interest rate cut hopes”. — Reuters
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