LONDON—Oil fell more than 2 percent toward $40 a barrel on June 10 after a report showed a rise in crude inventories in the United States, reviving concerns about oversupply and weak demand because of the CCP virus crisis.
The report from the American Petroleum Institute, an industry group, said crude stocks rose by 8.4 million barrels, rather than falling as analysts forecast. The U.S. governments official stocks figures are due out later on Wednesday.
“Indications from the American Petroleum Institute show that stocks built quite a lot,” said Bjornar Tonhaugen of Rystad Energy. “What else can you do as a trader but rush to sell?”
Brent crude was down 70 cents, or 1.7 percent, to $40.48 a barrel at 12:10 GMT. U.S. West Texas Intermediate (WTI) dropped 84 cents, or 2.2 percent, to $38.10.
Both benchmarks had hit three-month highs on Monday. Brent has more than doubled since falling to a 21-year low below $16 in April. But some analysts think the market has risen too far as the CCP (Chinese Communist Party) virus pandemic continues.
“With equity markets edging lower, and a vast amount of good news baked into oil prices at these levels, it was no surprise that the oil markets confidence wavered slightly,” said Jeffrey Halley, senior market analyst at OANDA.
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