Oil prices slide on US inflation data

london — Oil fell for a third day on Wednesday, dropping nearly one per cent on concerns about rising US production and another drop in financial markets after US consumer prices rose more than expected.

Brent crude futures fell 55¢ to $62.17 a barrel by 1350GMT. The price has lost 11 per cent since hitting a high above $71 in January and has now wiped out all its 2018 gains. US West Texas Intermediate crude futures dropped 77¢ to $58.42 a barrel.

US consumer prices excluding energy and food accelerated at their fastest pace in a year, triggering a bounce in the dollar as prospects for more US interest rate rises pushed up Treasury yields.

“In terms of a continuation of risk-off moves in the market, the US economic data does not help,” BNP Paribas head of commodity strategy Harry Tchilinguirian said.

“With yields moving higher on the inflation number, let us see how equities will close the day,” he said, adding US oil inventory data would also be closely watched.

The US Energy Information Administration was to release weekly inventory data later on Wednesday. Analysts expect a rise of 2.8 million barrels.

A report on Tuesday from the American Petroleum Institute showed US crude inventories rose by 3.9 million barrels, a higher level than forecast. —