08:56 AM EDT, 04/24/2024 (MT Newswires) -- Oil prices weakened early on Wednesday despite a report showing an unexpected drop in US oil inventories last week as risk premiums decline.

West Texas Intermediate crude for June delivery was last seen down US$0.41 to US$88.12 per barrel, while June Brent crude, the global benchmark, was down US$0.30 to US$88.12.

In its weekly survey, the American Petroleum Institute fell by 3.23-million barrels last week, while the consensus estimate from analyst polled by Reuters called for a rise of 0.8-million barrels. The Energy Information Administration will release official data later on Wednesday morning.

Wednesday's drop comes as the geopolitical risk premium accorded the commodity amid Middle East violence eases as tensions between Israel and Iran ease after tit for tat attacks earlier this month that caused little damage.

"After the initial knee-jerk reaction, M1 Brent has pared gains back to circa $88 but remains considerably higher from settlement. Commentators are speculating that the strike (was) largely symbolic, and if greeted by Iran in that same vein it will not meet the requirement for Iran to either respond or indeed consider it an act of war. Press from Iran remains mixed and there is a deafening silence from Israel at present.