Singapore, Mar. 22 (BNA): Oil fell in Asian trade morning, paring two straight days of gains after an industry report showed U.S. crude inventories rose unexpectedly last week in a sign fuel demand may be weakening.
Brent futures, which have risen more than 3% this week, were down 37 cents, or 0.5%, at $74.95 a barrel at 0400 GMT.
U.S. West Texas Intermediate (WTI) crude futures were down 39 cents, or 0.6%, at $69.28, according to Reuters.
Data from the American Petroleum Institute showed U.S. crude inventories rose by about 3.3 million barrels in the week ended March 17, sources said.
That defied expectations for a drawdown of about 1.6 million barrels from eight analysts polled by Reuters.
Traders and analysts will be looking out for data from the U.S. Energy Information Administration on Wednesday to see whether it confirms signs of weaker crude demand.
At the same time, markets are awaiting the outcome of the U.S. Federal Reserve's meeting on Wednesday, in what is widely seen as the most challenging Fed policy decision in recent times.
Following the meeting, Chair Jerome Powell is expected to unveil new economic projections and the central bank's path for interest rate hikes.
A pause in rate hikes would help stoke economic activity and in turn boost fuel demand.
Oil prices posted their biggest declines in months last week, after high-profile U.S. bank failures beginning March 10 and a crisis at Europe's Credit Suisse.
An emergency rescue of Credit Suisse over the weekend helped revive oil prices.
ANZ analysts said top traders see fundamental oil issues driving prices higher.
"There are concerns that supply may also get hit more than demand amid the banking crisis. U.S. shale output is most at risk from tighter credit conditions from regional U.S. banks," ANZ analysts said in a client note.
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