Oil falls as build in U.S. crude stocks adds to oversupply fears
Oil prices fell in early Wednesday trade as a build in U.S. crude inventories and a forecast for U.S. crude production to fall less than expected added to oversupply concerns.
Brent crude futures lost 0.3%, or 13 cents, at $42.95 per barrel. U.S. West Texas Intermediate crude futures slid 0.3%, or 10 cents, at $40.52 per barrel.
Prices traded in a narrow range over the last two weeks as a surge in new coronavirus cases globally weighed on the prospects of fuel demand recovery.
U.S. crude inventories grew last week despite expectations for a draw, while gasoline and distillate stockpiles fell more than expected.
The U.S. Energy Information Administration said that crude oil production is expected to drop by 600,000 bpd in 2020, comparably smaller to its earlier forecast. However, global oil demand is also expected to recover by the end of 2021.