Wednesday 21 October 2020

Oil prices slip as U.S. inventory build stokes fears of supply glut | Reuters

Oil prices slip as U.S. inventory build stokes fears of supply glut | Reuters
Oil prices eased on Wednesday after a surprise build-up in U.S. crude stockpiles stoked concerns about a global supply glut and a spike in global COVID-19 cases fuelled fears of a stalled oil demand recovery. 
Brent crude futures for December delivery were at $42.66 a barrel, down 50 cents, or 1.16%, as of 1027 GMT, while December U.S. West Texas Intermediate (WTI) crude futures slipped 56 cents, or 1.34%, to $41.14. Both benchmarks rose in the previous session. 
“Lower European equity markets and a surprise crude build are in my view the factors weighing on oil prices today. The market is probably also wanting to see if the EIA confirms the API report later today and any news on a fiscal package in the U.S.,” Giovanni Staunovo, analyst at UBS Bank, said. 
Crude inventories rose by 584,000 barrels in the week to Oct. 16 to 490.6 million barrels, data from industry group the American Petroleum Institute (API) showed, compared with analysts’ expectations in a Reuters poll for a draw of 1 million barrels.

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