$RH PetroGas (T13.SG)$$Rex Intl (5WH.SG)$$Dyna-Mac (NO4.SG)$...

Oil prices, which had risen for a second day in a row on Wed amid escalating attacks by Houthi rebels in the Red Sea, fell into negative territory after inventory data showed a surprise build in the US.

Brent futures closed lower at USD76.80 while WTI crude ended the session down more than 1% to settle at USD71.37.

Oil prices pared back earlier gains after the latest EIA data showed a surprise crude build of 1.34 million barrels last week, versus expectations for a draw.

Oil prices had been trading higher during the session after Houthi rebels backed by Iran launched their largest drone and missile attacks on vessels in the Red Sea.

Since mid-Nov "at least 23 commercial vessels have been targeted," according to Freightos Terminal, a shipping data platform.

Cargo giants Maersk and Hapag-Lloyd have paused shipments via the waterway until further notice. The companies are forced to send shipments around the cape of Africa, making their trips longer.

"Given the current conditions many analysts are once again calling for world oil consumption to outstrip supply into the first quarter of this year, especially if OPEC remains diligent on production cuts," Dennis Kissler, senior vice president at BOK Financial, said on Wed.

Crude futures rebounded on Tue on signs Russian crude exports started 2024 in line with cuts promised by the OPEC+ member. The rebound was a reversal from Mon when prices started the week down more than 3%.