Shafaq News/ Oil prices dropped, on Wednesday, as industry data showed a bigger-than-expected inventory build in the United States, where climbing COVID-19 cases may further dent fuel demand in the world’s biggest oil consumer.
In his first press briefing in months on the pandemic, U.S. President, Donald Trump, said the outbreak would probably worsen before it gets better, one of his first recent acknowledgments of the spread of the problem.
Industry group American Petroleum Institute (API) reported U.S. crude inventories rose last week by 7.5 million barrels, against expectations for a draw of 2.1 million barrels.
Brent crude fell 35 cents, or 0.8%, to $43.97 a barrel by 0541 GMT, and U.S. West Texas Intermediate (WTI) crude dropped 39 cents, or 0.9%, to $41.53.
Oil prices climbed about $1 the previous day, reaching their highest since March 6.
"Crude’s rally hit a brick wall after the API report showed a sharp rise in stockpiles and on President Trump’s warning that the coronavirus pandemic in the U.S. is likely to worsen," said Edward Moya, senior market analyst at OANDA in New York.
"The crude demand outlook just got a double whammy with what could be the biggest rise in stockpiles since late May if confirmed by the EIA report tomorrow and on Trump’s downbeat virus briefing," Moya said.