2023.07.2609:53:00UTC+00Oil Prices Decline After Crude Build

Oil prices fell on Wednesday after industry data showed a rise in U.S. crude inventories, suggesting that supplies were not as tight as previously expected.

Profit taking after recent strong gains and the lack of details on China's stimulus measures also weighed on prices.

Brent crude futures were down 0.8 percent at $82.62 a barrel, while WTI crude futures were down 0.8 percent at $78.98.

Prices were coming under pressure after data from the American Petroleum Institute showed U.S. crude stocks rose by about 1.3 million barrels in the week that ended on July 21, denting optimism about the world's economic recovery.

Official inventory data from the Energy Information Administration will be released later in the day.

The dollar was on the back foot in European trade, after having hit a two-week high. The Federal Reserve is scheduled to announce its interest-rate decision later today, with economists expecting a 25-bps hike to fight inflation.

Comments from Fed Chair Jerome Powell on inflation and the future trajectory of interest rates will be crucial to watch for.

The European Central Bank and the Bank of Japan are scheduled to announce their interest rate decisions on Thursday and Friday, respectively.