US crude fell to $80 a barrel after closing with little change on Tuesday. The recovery in fuel consumption has been erratic as Asia grapples with the already well-supplied Russian oil.
“There appears to be some concern about the broader demand outlook and weaker refinery margins will add to those concerns. Oil prices have remained fairly lopsided,” said Warren Patterson, head of commodities strategy in Singapore at ING Groep NV.
Crude oil recently rebounded after falling to a 15-month low in mid-March following turmoil in the banking sector. A surprise announcement by OPEC+ about production cuts and the cessation of flows in Iraq supported the gains.
The American Petroleum Institute reported that crude stocks at its storage center in Cushing, Oklahoma, fell again last week, according to people familiar with the data. If confirmed by government figures later on Wednesday, it will be the longest series of declines in more than a year.