08:48 AM EDT, 04/17/2024 (MT Newswires) -- Oil prices weakened for a third-straight day early on Wednesday as a report showed an larger than expected rise in US inventories last week, while geopolitical worries continue to moderate.

West Texas Intermediate crude oil for May delivery was last seen down US$0.69 to US$84.67 per barrel, while June Brent crude, the global benchmark, was down US$0.78 to US$89.24.

Oil is ceding some of the risk premium awarded the commodity following the failed weekend attack on Israel from Iran, which saw the Persian Gulf country send hundreds of drones and missile towards Israel, with nearly all shot down by aircraft and air defense systems. Israel has promised to retaliate for the attack but has so far restrained from a response amid pressure from the US and other countries even as it continues with its war in Gaza.

"Oil prices go about their business of unwinding some of the war premium that has been priced-in due to the continuing tensions surrounding the Gaza conflict and the subsequent Iranian missile onslaught on Israel. It is hard to imagine that 'cooler heads prevail' can be associated with this eons-long strife, but thus far Israel has adhered to the international calls of showing restraint," PVM Oil Associates noted.

In its weekly survey, the American Petroleum Institute on Tuesday said US oil inventories rose by 4.09-million barrels last week, well ahead of the consensus estimate for a 1.4-million barrel rise, according to a Reuters survey. The Energy Information Administration will release official inventory data late on Wednesday morning.