Oil prices fell on Wednesday after a series of gains, as weak economic data weighed on global demand, limiting the positive impact expected from escalating violence in the Middle East and the potential effects of an interest rate cut in the United States.
Brent crude futures for November dropped by 49 cents, or 0.7%, to settle at $73.21 per barrel. U.S. West Texas Intermediate (WTI) crude futures for October also declined by 50 cents, or 0.7%, to reach $70.69 per barrel.
Prices received some relative support from increasing concerns over potential disruptions to oil supplies from the Middle East as geopolitical tensions in the region continue to rise.
On the other hand, investors are focused on the possibility of an interest rate cut by the U.S. Federal Reserve, which could stimulate fuel demand in the U.S. and weaken the dollar.
Traders are still betting that the Federal Reserve will begin a series of anticipated rate cuts, starting with a half-percentage point reduction, a move that could put additional pressure on central bankers to deliver.
