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Oil prices fell on Wednesday after data from the American Petroleum Institute showed an unexpected weekly rise in U.S. crude supplies during the week ended July 13, defying expectations for a big fall.

U.S. crude supplies rose by 629,000 barrels for the week while gasoline stocks rose by 425,000 barrels.

Brent futures for September delivery were down 58 cents or 0.79 percent at $71.58 a barrel as investors awaited supply data from the Energy Information Administration later today. Crude oil WTI futures were down 38 cents or 0.57 percent at $66.78 a barrel.

Concerns about weak demand growth also weighed on the commodity. Federal Reserve Chairman Jerome Powell told the Senate Banking Committee at a hearing on Tuesday that a trade war with the rest of the world could complicate the Fed's forecasts.

Kansas City Federal Reserve Bank President Esther George also cautioned that there are predominant downside risks coming from uncertainty around trade policy.