Oil edge lower after two-day rally on supply issues | Reuters

Oil edge lower after two-day rally on supply issues | Reuters

Oil prices nudged lower on Wednesday, taking a breather after a strong rally this week spurred by the loss of a quarter of Mexico's production and signs that China, the world's biggest importer, has curbed a recent coronavirus outbreak.

Brent crude futures dropped 9 cents, or 0.1%, to $70.96 a barrel by 0639 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 19 cents, or 0.3%, to $67.35.

Both benchmark contracts rose by about 8% over the previous two days, erasing most of the slump from a seven-day losing streak.

"A second consecutive day of price rally in the crude market had also spurred some profit-taking, while American Petroleum Institute data showing a less-than-expected decline in U.S. oil inventories last week added to the downward pressure," Vandana Hari said in a note to clients.