LONDON, Nov 19 (Reuters) - Oil prices fell on Wednesday
due to higher crude inventories in the U.S., reinforcing
oversupply concerns, but falls were limited by a tighter fuel
market as a result of attacks against Russia's oil
infrastructure.
Brent crude futures fell 71 cents, or 1%, to $64.18
a barrel by 1111 GMT, after gaining 1.1% the previous session.
U.S. West Texas Intermediate crude futures fell 63
cents, or 1%, to $60.11 a barrel, after rising 1.4% on Tuesday.
U.S. crude stocks rose by 4.45 million barrels in the week
ended November 14, while gasoline inventories climbed by 1.55
million barrels and distillate inventories increased by 577,000
barrels, market sources said late on Tuesday, citing American
Petroleum Institute figures.
"Overall, the report was relatively bearish," said ING
commodities strategists, though they cautioned: "Market
participants appear more concerned about supply risks than the
odds of a surplus going forward."
Prices rose on Tuesday because of a tighter diesel market on
the back of lower Russian exports, PVM analyst John Evans said.
U.S. sanctions on Rosneft and Lukoil
set a November 21 deadline for companies to unwind their
dealings with the major Russian producers.
On Monday, the U.S. Treasury said the sanctions, already
squeezing Russia's oil revenue, are expected to curb its export
volumes. Crude buyers in China and India have already started
switching to alternative suppliers.
Concerns about Russian supply are being weighed against
analysts' forecasts that oil output is in excess of current
demand, which has put pressure on prices.
After Ukrainian attacks on Russian energy and port
infrastructure, profit margins on diesel fuel surged in Europe,
reaching their highest on Tuesday since September 2023, amid an
increase in refinery margins globally.
Official U.S. government inventory data will be released
later on Wednesday. Eight analysts polled by Reuters estimated
that crude inventories were likely to have fallen by an average
of about 600,000 barrels in the week to November 14.