Investing.com - WTI crude oil prices settled lower Wednesday as traders eased bets on disruptions to domestic crude production after a U.S.-Gulf-bound storm did not make landfall near oil-producing areas.
On the New York Mercantile Exchange crude futures for October delivery lost $1.15 to settle at $68.42 a barrel, while on London's Intercontinental Exchange, Brent fell 1.18% to trade at $77.25 a barrel.
Expectations for Tropical Storm Gordon to become a hurricane and make landfall near the oil-rich Gulf area, wreaking havoc on energy infrastructure and hindering oil output never materialized, sending oil prices sharply lower. The storm made landfall near the Alabama-Mississippi border.
Oil prices were also pressured by concerns that U.S.-China trade war is set to ratchet up a few notches as the Trump administration could impose a 25% tariff on $200 billion worth of Chinese imported goods after the comment period expires on Thursday.
Some fear that an prolonged trade war between the U.S. and China, the world's two largest economies, would stifle global economic growth, hurting demand for oil.
OPEC's secretary general, Mohammed Barkindo, said Wednesday that while the trade disputes "will eventually begin to hurt growth and, by extension, demand for energy," but added that he was "confident" the issues would be resolved.
Heading into settlement, investor focus shifted to fresh U.S. crude supply data expected to show a drawdown in stockpiles for the second week in a row.
U.S. petroleum inventory data from the American Petroleum Institute, an industry group, is due later in the session at 4:30 p.m., while official data from EIA is set to be released Thursday at 10:30 a.m.