Wednesday, 20 April 2022

Oil slips nearly 1% on broader demand concerns | Reuters

Oil slips nearly 1% on broader demand concerns | Reuters

Oil slipped nearly 1% on Wednesday, extending losses for a second day, as broader concerns about economic growth and oil demand stagnation overshadowed tightening supplies.

The market brushed off a bullish government that showed a drop in U.S. crude and fuel inventories as concerns about economic stagflation loomed, according to John Kilduff, partner at Again Capital LLC in New York.

U.S. crude stockpiles fell by 8 million barrels last week due to a surge in exports to a more than a two-year high, Energy Information Administration data showed.

"We're in an uncertain demand environment with continued pandemic-related lockdowns in China, and with poor global economic data coming out regularly," Kilduff said.

Brent crude futures fell 72, or 0.7%, to $$106.53a barrel by 12:59 a.m. EDT (1759 GMT).

The front-month WTI crude futures contract, which expires on Wednesday, fell 70 cents, or 0.7%, to $101.86.

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