The oil price has fallen on reports that US stocks have fallen by a smaller-than-expected amount.
The US government's Energy Information Administration (EIA) said crude inventories fell 2.5m barrels last week, less than expectations for a 3m-barrel drop in a Reuters poll and contradicting trade group American Petroleum Institute's report yesterday, which showed a crude build of 2.2m barrels.
Brent crude was down almost 2.9 per cent to $47.12 a barrel, while US benchmark West Texas Intermediate dropped 2.7 per cent to $45.60.
Oil prices yesterday rebounded from a two-month low with Brent crude jumping almost two per cent to $47.46 per barrel and West Texas Intermediate crude rising 1.5 per cent to $45.81.
Traders reported that the price surge was due to difficulties loading oil onto tankers at two export terminals in Iraq’s south following a pipeline leak.
However, supply issues remain and oil cartel Opec earlier this week downgraded its global demand growth forecast in 2017 to three per cent from a likely 3.1 per cent this year. Opec also warned that the recent Brexit vote could hurt European oil demand.