Oil Falls Below $40 On Fears of Rising Crude Stocks

Oil Falls

Early Wednesday, oil prices decreased with WTI Crude sliding below $40 a barrel, following a Tuesday increase in the API’s crude inventory, and fears about the second wave of coronavirus infections were reflected on the market in several countries, including the United States.

WTI crude traded 1.39% down on $39.85, and Brent Crude was down 1.17% on a day at $42.14 before the weekly inventory report for the EIA on Monday.

On Tuesday, API reported another 1.749 million barrel crude oil inventory for the week of the 19th June as opposed to analyst projections of a smaller 299.000 barrel inventory.

Although US oil production has decreased from 13.1 million BPD on March 13 to 10.5 million BPD for June 12, inventories remain at high demand at low level, due to the pandemic and the resulting lockdown.

The decline also reflected fear of the second wave of COVID-19 infections, which could continue to hamper oil demand recovery, among market participants.News

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