Oil prices fell modestly on Wednesday as U.S.-Saudi tensions eased and investors shifted their focus to inventory data from the U.S. Energy Information Administration, due later in the day.
Global benchmark Brent crude was down 42 cents or 0.51 percent at $81.14 a barrel after rising in the previous three sessions. U.S. light crude oil futures were down half a percent at $71.56.
Tensions over Saudi Arabia have eased as U.S. Secretary of State Mike Pompeo said that the kingdom promised a “transparent investigation” into the disappearance and alleged killing of a prominent journalist.
After data from the American Petroleum Institute showed an unexpected drawdown in U.S. crude inventories, investors are waiting to see whether there will be surprise in the EIA crude oil inventory report.
The report is forecast to show a build of 1.6 million barrels during the week ending October 12.