Oil prices take breather after three-day rally

Shafaq News / Oil prices fell on Wednesday after rising in the previous three sessions but losses were limited on the view that global supply tightness will continue as there is limited room for major producers such as Saudi Arabia to boost production.

U.S. West Texas Intermediate (WTI) crude futures slid 44 cents, or 0.4%, to $111.32 a barrel at 0150 GMT, giving up earlier gains.

Brent crude futures for August dropped 61 cents, or 0.5%, to $117.37 a barrel, also reversing an earlier gain. The August contract will expire on Thursday and the more-active September contract was at $113.14, down 66 cents, or 0.6%.

Both Brent and WTI rose more than 2% on Tuesday as concerns over tight global supply outweighed fears of that demand may slow in a potential future recession. The agreement by the Group of Seven economic powers to explore ways to cap the price of Russian oil also underpinned the market sentiment.

(Reuters)