Oil falls 3% despite surprise U.S. crude stock drawdown - Reuters

Oil falls 3% despite surprise U.S. crude stock drawdown - Reuters:

Oil prices fell more than 3% on Wednesday despite the first decline in U.S. crude inventories since January, as markets were affected by a solemn address from the U.S. Federal Reserve chairman warning that economic recovery from the coronavirus pandemic would take many months.

The markets have rallied in the last several days on optimism that fuel demand destruction has bottomed out and producers have aggressively cut production to deal with the supply glut due to the pandemic. However, with governments signaling a long period before activity rebounds, risk assets like stocks and oil slipped on Wednesday.

Brent crude fell 85 cents a barrel, or 2.9% to $29.12 by 2:13 p.m. EDT (1813 GMT), after hitting a low of $28.92 a barrel earlier.

West Texas Intermediate crude futures fell 78 cents, or 3%, to $25.00.

U.S. Federal Reserve Chair Jerome Powell gave a solemn assessment of the U.S. economy and renewed his skepticism of negative interest rates.