Oil prices experienced a slight decline on Wednesday, retreating after a surge fueled by optimism surrounding additional stimulus measures in China during the previous session.
Market sentiment was not significantly bolstered by industry data indicating that U.S. inventories decreased more than anticipated over the past week.
However, oil prices remained supported by two weeks of robust gains, having recovered from nearly three-year lows reached earlier in September.
This price increase was driven by a combination of factors, including supply disruptions in the U.S. and rising unrest in the Middle East.
Brent oil futures for November delivery dropped 0.1 percent to $75.12 per barrel, while West Texas Intermediate crude futures also fell 0.1 percent to $71.46 per barrel by 21:39 ET (01:39 GMT).
China stimulus offers initial lift
On Tuesday, the People’s Bank of China announced a range of stimulus initiatives, including enhanced liquidity measures and more relaxed restrictions on the property market.
This announcement raised expectations for improved economic growth in the world’s largest oil importer, leading to a 1.7 percent increase in oil prices during the session.
According to the American Petroleum Institute, U.S. oil inventories fell by 4.339 million barrels in the week ending September 20, significantly surpassing forecasts of a 1.1 million barrel draw.
The API data typically indicates that official inventory figures, set to be released later in the day, will reflect similar trends.
U.S. inventories are expected to remain tight as supply disruptions caused by storms in the Gulf of Mexico counterbalance the reduced fuel demand following the end of the busy summer travel season.
Hurricane Helene is anticipated to traverse the Gulf in the coming days, marking the second significant storm to impact the region within a month.
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