Oil slips as rising U.S. crude inventories weigh on demand outlook

Oil prices moved lower in early Asian trading after U.S. crude stockpiles unexpectedly increased last week, undermining confidence in the strength of U.S. demand. The U.S. Energy Information Administration, or EIA (U.S. energy statistics agency), said inventories rose as imports increased and exports declined. Antonio Di Giacomo, a senior market analyst at XS.com, said the latest figures cast doubt on demand strength and warned that a sustained rise in commercial inventories could curb momentum driven by geopolitical risks, especially if fuel consumption shows signs of slowing in the coming weeks. Front-month WTI futures fell 1.4% to $82.13 a barrel, while Brent declined 1.3% to $87.86 a barrel.

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