Oil prices rose in Asia after falling more than 2% on Tuesday, as an industry report pointed to a further decline in U.S. crude inventories.
Brent crude rose to $80 a barrel, while West Texas Intermediate crude rose above $75. The industry-funded American Petroleum Institute forecast that national inventories fell by 3.4 million barrels last week, which would be the eighth decline in nine weeks if official data confirms it later in the day.
Crude oil prices have taken a hit in recent sessions, with the latest decline coming after futures rose to near the 200-day moving average.
Political risks in the Middle East and the threat of reduced oil supplies from Libya have supported recent gains, but they have been countered by a broad-based bearish wave — prompting major Wall Street banks, including Goldman Sachs Group Inc. and Morgan Stanley, to cut their price forecasts for next year.
The banks also pointed to a bleak outlook in China due to some pessimism, as economic malaise and a shift to electric vehicles are cutting fuel consumption in the world’s biggest crude importer. In Europe, diesel demand is expected to fall below pandemic-era levels due to weak manufacturing and structural shifts in the region’s car fleet.
