<p>Oil prices fell on Wednesday, taking a breather after a strong rally this week spurred by the loss of a quarter of Mexico's production and signs that China, the world's biggest importer, has curbed a recent coronavirus outbreak.</p>.<p>US West Texas Intermediate (WTI) crude futures fell 25 cents, or 0.4 per cent, to $67.29 a barrel by 0151 GMT, while Brent crude futures dropped 22 cents, or 0.3 per cent, to $70.85.</p>.<p>Both benchmark contracts rose by about 8 per cent over the previous two days, erasing most of the slump from a seven-day losing streak. Prices mainly climbed because of the loss of more than 400,000 barrels per day of supply in Mexico after a fire on an oil platform.</p>.<p>Last week's losses were driven by fears that the spread of the highly contagious Delta variant of the coronavirus in Asia would slow the region's economic recovery.</p>.<p>Demand in the United States, the world's biggest oil consumer, appears to be holding up well, according to the latest data from industry group The American Petroleum Institute.</p>.<p>API data showed crude inventories fell 1.6 million barrels for the week ended Aug. 20, while gasoline stockpiles fell 1 million barrels, according to sources, who spoke on condition of anonymity.</p>.<p>Analysts were expecting crude stockpiles to fall by 2.7 million barrel and gasoline stocks to drop by 1.6 million barrels, according to a Reuters poll.</p>.<p>Official data from the US Energy Information Administration is due to be released on Wednesday at 1430 GMT.</p>.<p>In a promising sign that the spread of Delta infections was easing in China, the country on Wednesday reported just 20 new confirmed coronavirus cases for Aug. 24, down from 35 a day earlier.</p>.<p>ANZ commodity analysts pointed to a pick-up in traffic in Beijing and Shanghai as evidence of the Delta variant being "stamped out".</p>.<p>"Nevertheless, improvements in the airline industry may lag amid some ongoing restrictions," ANZ Research said in a note, adding that the loss of Mexican supply is equal to planned output increases in August from the Organization of the Petroleum Exporting Countries and its allies. </p>
<p>Oil prices fell on Wednesday, taking a breather after a strong rally this week spurred by the loss of a quarter of Mexico's production and signs that China, the world's biggest importer, has curbed a recent coronavirus outbreak.</p>.<p>US West Texas Intermediate (WTI) crude futures fell 25 cents, or 0.4 per cent, to $67.29 a barrel by 0151 GMT, while Brent crude futures dropped 22 cents, or 0.3 per cent, to $70.85.</p>.<p>Both benchmark contracts rose by about 8 per cent over the previous two days, erasing most of the slump from a seven-day losing streak. Prices mainly climbed because of the loss of more than 400,000 barrels per day of supply in Mexico after a fire on an oil platform.</p>.<p>Last week's losses were driven by fears that the spread of the highly contagious Delta variant of the coronavirus in Asia would slow the region's economic recovery.</p>.<p>Demand in the United States, the world's biggest oil consumer, appears to be holding up well, according to the latest data from industry group The American Petroleum Institute.</p>.<p>API data showed crude inventories fell 1.6 million barrels for the week ended Aug. 20, while gasoline stockpiles fell 1 million barrels, according to sources, who spoke on condition of anonymity.</p>.<p>Analysts were expecting crude stockpiles to fall by 2.7 million barrel and gasoline stocks to drop by 1.6 million barrels, according to a Reuters poll.</p>.<p>Official data from the US Energy Information Administration is due to be released on Wednesday at 1430 GMT.</p>.<p>In a promising sign that the spread of Delta infections was easing in China, the country on Wednesday reported just 20 new confirmed coronavirus cases for Aug. 24, down from 35 a day earlier.</p>.<p>ANZ commodity analysts pointed to a pick-up in traffic in Beijing and Shanghai as evidence of the Delta variant being "stamped out".</p>.<p>"Nevertheless, improvements in the airline industry may lag amid some ongoing restrictions," ANZ Research said in a note, adding that the loss of Mexican supply is equal to planned output increases in August from the Organization of the Petroleum Exporting Countries and its allies. </p>