Oil prices fell on Wednesday as coronavirus cases in China continued to rise, raising concerns of lower fuel demand in the world’s top crude importer that outweighed concerns about an escalation of geopolitical tensions and tighter oil supply.

Brent crude futures, the international oil benchmark, declined by 60 cents or 0.6% to $93.26 per barrel by 05.01 GMT, while US West Texas Intermediate (WTI) crude futures fell 69 cents or 0.8% to $86.23 per barrel.

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Oil prices ended higher on Tuesday after oil supply to parts of Eastern and Central Europe through a section of the Druzhba pipeline was temporarily suspended, according to oil pipeline operators in Hungary and Slovakia.

The disruption came along with an explosion in a village in eastern Poland near the Ukraine border that killed two people and raised the possibility that the Russian-Ukraine conflict could intensify.

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However, after the initial “knee-jerk rally in oil prices, the weak market follow-through reflects the significant prudence that will be taken to avoid an escalation,” said Stephen Innes, managing partner at SPI Asset Management.

United States President Joe Biden’s comments that the missile was probably not fired from Russia also helped to ease the immediate escalation of concerns, he added.

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In China, increasing COVID-19 cases are weighing on sentiment despite the hopes raised by easing virus restrictions this week. That has reduced the oil demand growth outlook, with the International Energy Agency (IEA) forecasting demand growth to slow to 1.6 million barrels per day in 2023 from 2.1 million barrels per day this year.

Earlier, the Organisation of the Petroleum Exporting Countries (OPEC) slashed its forecast for 2022 global oil demand growth for a fifth time since April citing mounting economic challenges.

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The safe-haven US dollar also strengthened as markets took stock of geopolitical risks. A stronger US dollar-denominated commodity is more expensive for holders of other currencies and tends to weigh on oil and other risky assets.

Industry data showing a higher-than-expected decline in US crude stockpiles provided some support to oil prices. US crude oil inventories decreased by around 5.8 million barrels for the week ended November 11, according to American Petroleum Institute figures.

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In the United States, producer prices increased less than expected in October, suggesting inflation was starting cool down, which may allow the Federal Reserve to slow its aggressive pace of interest rate hikes.