Investing.com-- Oil prices fell in Asian trade on Wednesday after industry data signaled an increase in U.S. oil inventories, while focus remained on diplomacy efforts by the U.S. to quell tensions in the Middle East. 

Crude prices gained some ground in the prior session after Israel said it had killed Hashem Safieddine, the heir apparent to the late Hezbollah Leader Hassan Nasarallah, who was killed last month by an Israeli strike. 

U.S. Secretary of State Antony Blinken held extended discussions with Israeli leaders this week over a potential de escalation in the conflict, while also pushing for more humanitarian aid in Gaza. 

Focus also remained on more economic cues from top oil importer China, amid persistent concerns over slowing demand in the country. 

Brent oil futures expiring in December fell 0.4% to $75.75 a barrel, while West Texas Intermediate crude futures fell 0.4% to $71.45 a barrel by 21:00 ET (01:00 GMT). 

US inventories clock bigger-than-expected build- API 

Data from the American Petroleum Institute showed that U.S. oil inventories grew 1.643 million barrels in the past week, compared to expectations for a build of 0.7 mb. 

The reading usually heralds a similar trend from official inventory data, which is due later on Wednesday, and spurred some concerns that U.S. fuel demand was cooling.

Oil prices were also pressured by recent strength in the dollar, as expectations of smaller interest rate cut by the Federal Reserve boosted the greenback to its strongest levels since early-August.