Oil price decline continues

Oil prices settled after falling after a report showed U.S. inventories continued to rise, a sign that supply may be outpacing demand. Brent crude traded around $82 a barrel after falling 0.9 percent on Tuesday, while U.S. crude traded above $78. The industry-funded American Petroleum Institute said U.S. domestic inventories rose by 400,000 barrels last week, according to people familiar with the data. If official figures due on Wednesday are confirmed, it would be the sixth week of gains. Global benchmark Brent has risen nearly 6 percent this year, supported by tensions in the Middle East, higher shipping costs due to shipping disruptions and OPEC+ cuts. Gains were held back by a still-weak demand outlook, particularly in China, and rising supplies from non-OPEC producers such as the United States, Brazil and Guyana. Meanwhile, Saudi Arabia unexpectedly boosted prices of its main crude for buyers in Asia after the Organization of the Petroleum Exporting Countries and its allies agreed on Sunday to extend current production cuts until the end of June. China has set a growth target of around 5% for its economy this year as top leaders seek to boost confidence in the world’s second-largest economy. But while Chinese Premier Li Qiang said support was needed “on all fronts,” his annual report to the legislature offered little fiscal firepower. Investors will also be watching Fed Chair Jerome Powell’s testimony before the House Financial Services Committee later on Wednesday for clues about the direction of U.S. monetary policy.