Oil takes breather after 2-day rally
Oil prices sank lower on Wednesday, taking a breather following the week’s strong rally. The black liquid’s earlier rally was fueled by the loss of a quarter of Mexico’s production and indications that China has stamped out its COVID-19 outbreak.
Brent crude futures lost 0.1%, or 9 cents, to $70.96 a barrel by 0639 GMT, while US West Texas Intermediate (WTI) crude futures dipped 0.3%, or 19 cents, to $67.35.
Both benchmark contracts made about 8% gains during the last two days, recovering most of the losses from a seven-day losing streak.
Prices rallied after an over 400,000 barrels per day drop in supply in Mexico following a fire on an oil platform. However, the state oil firm said that it expects to resume production by August 30.
Meanwhile, American Petroleum Institute data revealed a drop in crude inventories of 1.6 million barrels for the week ended August 20, while gasoline stockpiles decreased by 1 million barrels.
In China, the world’s largest importer of oil, signs of containment of the COVID-19 outbreak were seen as the country reported on Wednesday just 20 new confirmed cases, lower than the previous day’s 35.