Oil mixed after U.S. stock build, big inflation figure | Reuters

Oil mixed after U.S. stock build, big inflation figure | Reuters

Oil prices were little changed on Wednesday after U.S. oil inventories rose and after U.S. inflation figures bolstered the case for another big Federal Reserve interest rate increase.

Brent crude was down 39 cents to $99.10 a barrel as of 1:18 p.m. ET (1718 GMT), while U.S. West Texas Intermediate crude fell 10 cents to $96.74 a barrel.

Investors have been selling oil of late on worries that aggressive rate hikes to stem inflation will slow economic growth and hit oil demand. Prices fell by more than 7% on Tuesday in volatile trade to settle below $100 for the first time since April.

"Demand issues are catching up to high prices. The U.S. dollar is causing downside pressure on all commodities. There’s been a shift in mentality over the last couple of weeks," said Tony Headrick, energy markets analyst at CHS Hedging.

However, the physical market remains tight. Key benchmarks, such as Forties crude and U.S. Midland crude, are trading at premiums to the futures market, painting a different picture than what is happening in futures.