Oil falls towards $40 as U.S. inventory rise revives glut worries - Reuters

Oil falls towards $40 as U.S. inventory rise revives glut worries - Reuters:

Oil fell more than 2% towards $40 a barrel on Wednesday after a report showed a rise in crude inventories in the United States, reviving concerns about oversupply and weak demand because of the coronavirus 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. [API/S] The U.S. government’s official stocks figures are due out later on Wednesday. [EIA/S]

“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 LCOc1 was down 70 cents, or 1.7%, to $40.48 a barrel at 1210 GMT. U.S. West Texas Intermediate (WTI) CLc1 dropped 84 cents, or 2.2%, to $38.10.