08:54 AM EDT, 10/09/2024 (MT Newswires) -- Oil prices moved lower for a second day early on Wednesday as weak demand and an outsized rise in U.S oil inventories overcame worries over a pending Israeli attack on Iran.

West Texas Intermediate crude oil for November delivery was last seen down US$0.14 to US$73.43 per barrel, while December Brent crude, the global benchmark, was down US$0.26 to US$76.92.

The commodity is correcting from a 13% spike after Iran's Oct.1 strike on Israel and a still expected Israeli response. A spreading Middle East war would threaten supplies from the Persian Gulf. However weak fundamentals are coming back into focus as demand remains weak and supply is on the rise.

In its weekly survey, the American Petroleum Institute on Tuesday said U.S. oil inventories rose by 10.9-million barrels last week, well above the consensus estimate for a rise of 1.95-million barrels, according to Oilprice.com. The Energy Information Administration will release official data later on Wednesday morning.

China on Tuesday added to the bearish outlook as it declined to offer additional stimulus to shore up a flagging economy that has lowered demand growth from the No.1 importer. The Energy Information Administration lowered on Tuesday reiterated its forecast for 2024 demand growth from the country of 0.1-milllion barrels per day this year and sees a rise of just 0.3-million bpd of additional demand from the country in 2025.

"The lack of military action from Israel on Monday, and the lack of new measures in China saw crude oil slump by more than 4%, a reminder that without the geopolitical risk premium and China stimulus, Brent would probably trade close to USD 70 than USD 80," Saxo Bank noted.