Oil prices dropped on Wednesday due to an unexpected build in U.S. inventories and concerns over high U.S. interest rates. This marks the fourth consecutive session of decline, fueled by fears of weak demand and reduced geopolitical tensions in the Middle East. Additionally, optimism about China’s economic recovery has cooled.

The American Petroleum Institute reported a 2.5 million barrel increase in U.S. oil inventories for the week ending May 17, contrary to expectations. This unexpected build raised concerns about sluggish oil demand. Traders are wary that persistent inflation and high interest rates will curb demand, despite the upcoming travel-heavy summer season.