SULAIMANI (ESTA) — Oil prices fell eased on Wednesday after a surprise build-up in U.S. stockpiles stocked concerns about a global supply glut even as a spike in coronavirus cases in the world fueled fears of slower recovery in fuel demand.
Brent crude futures for December delivery slipped 35 cents, or 0.81%, to $42.81 a barrel as of 0552 GMT, while December U.S. West Texas Intermediate (WTI) crude futures were at $41.40 a barrel, down 30 cents, or 0.72%.
Crude inventories rose by 584,000 barrels in the week to October 16 to about 490.6 million barrels, data from industry group the American Petroleum Institute showed, according to Reuters.
Adding to pressure, worldwide COVID-19 cases crossed 40 million on Tuesday, with some parts of Europe imposing renewed lockdown measures.
“A U.S. inventory build, together with the recent resurgence of the COVID-19 cases worldwide, prompted investors to make position adjustments,” said Chiyoki Chen, chief analyst at commodity broker Sunward Trading, Reuters reported.
On the supply side, Russia’s energy minister said on Tuesday it was too early to discuss the future of global oil production curbs beyond December, less than a week after saying plans to scale back existing output restrictions should proceed.
Earlier this year the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia – together known as OPEC+ – agreed to trim production cuts in January from a current 7.7 million barrels per day (bpd) to roughly 5.7 million bpd.
