Oil at 3-month low

Oil prices remained at three-month lows as expectations of a slowdown in U.S. gasoline consumption added to a raft of indicators suggesting a worsening demand outlook. Global benchmark Brent rose to $82 a barrel after falling 4.2 percent on Tuesday, while U.S. crude was around $77. American gasoline demand is set to fall to a 20-year low next year on a per capita basis, with prices at the pump and inflation likely to ease discretionary drive, according to a U.S. government report. Oil has fallen sharply in the past three weeks as the premium on the risk of an Israel-Hamas war eases and demand outlook worsens. There are concerns about the state of the economy in China, the world’s largest importer, and fresh doubts about whether the Federal Reserve is finished tightening. On the supply front, shipments from Russia approached a four-month high, while industry data showed U.S. crude inventories rose by almost 12 million barrels last week. “The market is not as tight as many expected. This coincides with easing concerns about potential supply disruptions in the Middle East and sentiment turning more negative,” said Warren Patterson, head of commodity strategy at ING Groep NV.