Oil erases gains as demand, supply outlook assessed

Oil drilling rigs

Oil prices erased early gains today, Feb. 26, as investors assessed US inventory data amid concerns over oversupply and a potential peace deal between Russia and Ukraine.

Brent crude futures for April delivery fell 0.65%, or 49 cents, to close at $72.53 a barrel, after touching $73.34.

WTI crude futures for April delivery also dipped 0.45%, or 31 cents, to $68.62 a barrel, after rising to $69.28.

The Energy Information Administration data revealed that US crude inventories fell by 2.3 million barrels during the week ended Feb. 21, contrary to expectations of a rise of 2.5 million barrels.

The weekly report also showed that US crude production rose last week to 13.5 million barrels per day, which is about 200,000 barrels per day more than production a year ago.

US gasoline stocks rose by about 400,000 barrels last week, while distillate stocks jumped by about 3.9 million barrels, as demand for them fell by about 300,000 barrels per day to 4.097 million barrels per day.