Oil extend losses into 3rd day on U.S. stock build, pandemic fears

Oil prices extended their losses into a third day on Thursday as a surprise build-up in U.S. crude inventories and a resurgence of COVID-19 cases in India and Japan fuelled fears that a recovery in global economy and fuel demand may be stalled, Reuters reports. 

Brent crude futures fell 20 cents, or 0.3%, to $65.12 a barrel by 0527 GMT, following a drop of $1.25 on Wednesday. U.S. West Texas Intermediate (WTI) crude futures were down 21 cents, or 0.3%, at $61.14 a barrel, after losing $1.32 on Wednesday.

Both contracts dropped more than 2% on Wednesday, closing at their lowest since April 13. They are down about 3% so far this week.

U.S. crude oil stockpiles unexpectedly edged higher in the week ended on April 16, the Energy Information Administration said on Wednesday, with the inventories rising by 594,000 barrels, against analysts' expectations in a Reuters poll for a 3 million-barrel drop. ,

India, the world's third-largest oil user, reported on Thursday 314,835 new cases of the coronavirus over the previous 24 hours, the highest daily increase recorded anywhere. Japan, the world's No.4 oil importer, is expected to issue a third state of emergency on Tokyo and three western prefectures that could last for about two weeks, according to media reports. 

The Organization of the Petroleum Exporting Countries and allies led by Russia, a producer group known as OPEC+, are heading for a largely technical meeting next week in which major changes to policy are unlikely, Russian Deputy Prime Minister and OPEC+ sources said. read more

News.Az 

You Might Also Like