Oil suffers as supply concerns emerge from increasing U.S. stocks
Oil underperformed on Wednesday, with a frail trading session ending oil prices’ high-streak records.
Underperformance was brought by an unprecedented boost In U.S. inventories, bringing oversupply concerns amid a virus-driven slump in oil demand.
U.S. West Texas Intermediate (WTI) crude CLc1 futures dropped 27 cents to $24.29 a barrel by 0436 GMT. It ended a five-day upbeat performance with a 1.1% defeat. Brent crude LCOc1 shed 20 cents and was last quoted at $30.77 per barrel. It shed a total of 0.7%, declining from a six-day high record.
Oil underperformed as a report showed an 8.4% increase in U.S. crude inventories the previous week—a figure way larger than what was expected, according to the data released by the American Petroleum Institute (API) on Tuesday.
The agency also reported a sharp contraction in gasoline as stocks in the U.S. dropped by 2.2 million barrels. Moreover, global inventories are still posed to reach limits in June, said Chris Midgley, Global Director of Analytics of S&P Global Platts.