- Brent fell more than 6 percent in July, while US crude futures slumped about 7 percent
- Signs that a supply disruption in the Bab Al-Mandab Strait in the Red Sea could be resolved also weighed on prices
TOKYO: Oil prices fell on Wednesday after industry data showed US stockpiles of crude unexpectedly rose, starting the new month in negative territory after the largest monthly decline in two years in July.
October Brent crude futures dropped 30 cents, or 0.4 percent, to $73.91 a barrel by 0325 GMT, adding to a 1.8 percent loss in the previous session.
US crude futures were down 37 cents, or 0.5 percent, at $68.39 a barrel, having dropped nearly 2 percent on Tuesday.
Brent fell more than 6 percent in July, while US crude futures slumped about 7 percent, the biggest monthly decline for both benchmarks since July 2016.
Data from the American Petroleum Institute (API) showed domestic crude inventories rose by 5.6 million barrels last week. A Reuters poll had forecast a fall of 2.8 million barrels.
Official data from the US Energy Information Administration (EIA) is due later on Wednesday.
鈥淎PI ... showed a big build. So all eyes will be on the EIA data this evening,鈥� said Greg McKenna, chief market strategist at AxiTrader.
Signs that a supply disruption in the Bab Al-Mandab Strait in the Red Sea could be resolved also weighed on prices.
Yemen鈥檚 Houthi group said it was ready to unilaterally halt attacks in the Red Sea to support peace efforts. 抖阴短视频 suspended oil shipments through the strait last week after the Houthis attacked two Saudi oil tankers.
A Reuters poll showed that oil prices are likely to hold fairly steady this year and next as increased output from OPEC and the US meets growing demand led by Asia and helps to offset supply disruptions.
OPEC has pledged to offset the loss of supply from Iran, the group鈥檚 third-biggest producer.
Looming US sanctions have already started to cut Iranian exports, with buyers from its biggest customers in Asia cutting imports to a seven-month low in June.