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Reports of a rise in U.S. crude stocks cause oil prices to fall

The oil prices dropped on Wednesday, as a report from the industry showed that U.S. crude stocks had increased. Worries about tariffs also weighed on the sentiment. This wiped out three days' gains fueled by Middle East tensions.

Brent futures dropped 36 cents or 0.47% to $76.64 per barrel at 0130 GMT. U.S. West Texas Intermediate crude fell 37 cents or 0.5% to $72.95 per barrel.

Brent prices rose by 3.6%, while WTI prices climbed 3.7%.

According to Tuesday's American Petroleum Institute data, sources citing the American Petroleum Institute, crude oil stocks in the U.S. grew by 9.4 millions barrels during the week ended February 7.

API data shows that gasoline inventories dropped by 2,51 million barrels and distillate stock fell by 590 000 barrels.

A Tuesday poll showed that respondents expected U.S. crude and gasoline stocks to have increased last week while distillate inventory is likely to have decreased.

The Energy Information Administration will release data later on Wednesday.

The EIA has increased its estimate of U.S. crude oil production, while keeping its demand forecast the same. The EIA now estimates that U.S. crude production will average 13,59 million barrels of oil per day by 2025. This is up from the previous estimate of 13,55 million barrels.

Prices fell on fears that the multiple U.S. Tariffs enacted, or even threatened, could slow global economic growth.

The market's jitters about supply, however, limited the losses. The Israeli Prime Minister Benjamin Netanyahu, and U.S. president Donald Trump both warned that the ceasefire would end in Gaza if Hamas failed to release Israeli hostages. This raised the threat of renewed violence which could destabilize Middle East - a region that is a major oil producer.

The tensions, coupled with U.S. restrictions on Russian oil flowing to China and India as well as Trump's "maximum-pressure" campaign against Iranian oil, contributed to a 1% increase in oil prices Tuesday. (Reporting and editing by Christian Schmollinger; Colleen howe)

(source: Reuters)