(Bloomberg) -- Oil fell as rising gasoline stockpiles in the US signaled a shaky picture for demand, undercutting the effect of output disruptions in Libya. Traders weighed rising tensions in the Middle East against data showing US gasoline inventories swelling the most since in three decades and implied demand dropping to a yearly low. Still, the unrest in the Middle East is diverting attention from weak near-term fundamentals, contributing to greater upside potential than downside risk, he said. A renewed focus on geopolitics, both in the Middle East and Libya, is showing the potential to reintroduce a conflict premium for oil. Crude fell by about a fifth in the previous quarter as rising production from non-OPEC+ sources, including the US, threatened to outstrip demand.
