02:44 PM EDT, 08/21/2024 (MT Newswires) -- West Texas Intermediate (WTI) crude oil fell to the lowest in more than seven months on Wednesday despite a report showing U.S. inventories fell last week, as the focus remains on on weak China demand and easing international tensions,

WTI crude for October delivery closed down US$1.24 to settle at US$71.93 per barrel, the lowest since Jan.8, while October Brent crude, the global benchmark, was last seen down US$1.50 to US$75.70.

Pessimism has dominated the market for the past four sessions, with weak economic data from China showing the No.1 importer's appetite for oil is low and unlikely to soon strengthen. Concerns over a wider Middle Eastern war are easing as Iran continues to hold back on a promised revenge strike on Israel following the assassinations of senior figures in the Hezbollah and Hamas militias earlier this month.

"The crude oil market sentiment remains under pressure as China's economic slowdown and the rapid adoption of EVs and hybrid cars reduce fuel demand, leading to lower refinery runs and diminished oil demand. Refinery margins, the key driver for crude demand, remain weak in Europe and the USA, making it increasingly unlikely that OPEC+ will begin to unwind voluntary cuts from October," Ole Hansen, head of commodity strategy at Saxo Bank, noted.

In its weekly survey, the Energy Information Administration reported U.S. crude oil inventories fell by 4.6-million barrels last week, more than the consensus estimate for a 2.7-million barrel drop according to analysts polled by Reuters.