• Monday, Jul 04, 2022
  • Last Update : 04:24 pm

Oil edges lower as US stockpiles grow more than expected

  • Published at 08:18 am June 24th, 2020
US Crude oil
File photo: The sun sets behind a crude oil pump jack on a drill pad in the Permian Basin in Loving County, Texas, US November 24, 2019 Reuters

The market remains concerned about a rising number of coronavirus cases in the United States and elsewhere

Oil futures edged lower on Wednesday, extending losses from the previous day, after US crude stockpiles grew more than expected, adding to worries about oversupply, although a fall in gasoline stocks kept the decline in check.

Brent crude was down 2 cents at $42.61 a barrel by 0045 GMT, while US West Texas Intermediate (WTI) crude futures fell 4 cents, or 0.1%, to $40.33 a barrel.

US crude inventories rose by a much bigger than expected 1.7 million barrels last week, according to industry group the American Petroleum Institute (API), well ahead of analysts’ expectations for a 300,000-barrel build. 

However, US gasoline and distillate inventories fell, the data showed, feeding optimism that fuel consumption is picking up as some economies ease lockdowns imposed to contain the coronavirus pandemic.

US government data will be released on Wednesday. 

Global oil consumption has started to recover as economies emerge from lockdown, while the Organization of the Petroleum Exporting Countries (OPEC) and allied producers have slashed output and US shale producers have shut in wells.

On Tuesday, both Brent and WTI contracts traded at their highest levels since prices collapsed in early March.

Still, the market remains concerned about a rising number of coronavirus cases in the United States and elsewhere, said Kazuhiko Saito, chief analyst at Fujitomi Co.

New cases of Covid-19 rose 25% in the United States in the week ended June 21 compared to the previous seven days, a Reuters analysis found. 

China, the world’s top crude importer, is also expected to slow crude imports in the third quarter, after record purchases in recent months, as higher oil prices hurt demand and refiners worry about a second virus outbreak. 

50
Facebook 50
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail