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WTI crude prices fell on Wednesday, pulled down by weaker stock markets after a key advocate for free trade in the U.S. government resigned, stoking concerns Washington will go ahead with import tariffs and risk a trade war.
Soaring U.S. crude oil production and rising inventories also dragged on crude prices, traders said.
Crude oil followed suit, with Brent futures down 51 cents, or 0.8 percent, from their previous close at $65.28 per barrel at 0414 GMT. U.S. West Texas Intermediate (WTI) crude futures were at $62.13 a barrel, down 47 cents, or 0.75 percent.
Major Powers, including the European Union and China, has warned that such tariffs could lead to retaliatory action and trigger a global trade war, which could grind to a halt economic growth and, by extension, oil consumption.
Traders said oil prices were also weighed down by a reported rise in U.S. crude oil inventories.
Crude inventories rose by 5.661 million barrels in the week to 426.880 million barrels, data from the American Petroleum Institute showed on Tuesday.
“Oil prices applied brakes as market optimism reclines on bearish API weekly petroleum reports,” brokerage Phillip Futures said in a note.
Official data by the U.S. Energy Information Administration (EIA) is due on Wednesday.
On the technical charts, WTI crude is trading in the negative zone above all the moving averages (9 day, 20 day, 50 day, 100 day and 200 day). The RSI is at 49.17 and the MACD is below the signal line.
Sell stop at 62.09, Take profit at 61.80, Stop loss at 62.20