Oil slips on fears of supply glut from possible return of Iranian supply | Reuters

Oil slips on fears of supply glut from possible return of Iranian supply | Reuters

Oil inched lower on Wednesday as worries that a possible return of Iranian supply would cause a glut outweighed expectations of improving U.S. fuel demand that were reinforced by a drop in weekly inventory estimates.

Brent crude oil futures for July fell 6 cents, or 0.1%, to $68.59 a barrel by 0434 GMT, while U.S. West Texas Intermediate (WTI) crude for July was at $65.92 a barrel, down 15 cents, or 0.2%.

Both benchmarks edged higher on Tuesday, ending at their highest levels in a week, amid hopes for higher demand fed by the approach of the northern hemisphere’s summer driving season and a lifting of coronavirus curbs.

U.S. crude oil and fuel inventories fell last week, said two market sources, citing Tuesday’s American Petroleum Institute figures.

Crude stocks fell by 439,000 barrels in the week ended May 21. Gasoline inventories fell by 2 million barrels and distillate stocks fell by 5.1 million barrels, the data showed, according to the sources.