Oil in the red amid unexpected growth in US inventories

Oil in the red amid unexpected growth in US inventories

Oil in the red amid unexpected growth in US inventories

TOKYO (Reuters) – Oil prices fell on Wednesday amid demand worries amid weekly US oil inventories and the spread of the coronavirus in Europe.

Futures for Brent crude oil fell 1.03% to $ 41.29 a barrel by 9:15 am Moscow time, while WTI futures dropped 1.23% to $ 39.31 a barrel.

The sharp rise in coronavirus cases in countries such as France and Spain, along with the likelihood of additional restrictions in the UK, have reignited concerns over fuel demand. On Monday, both benchmarks lost more than 4%, in a maximum of two weeks.

US oil inventories rose over the past week, while gasoline inventories fell by almost 8 million barrels, data from the American Petroleum Institute (API) showed on Tuesday.

This year, “global oil demand will decline by more than 10% from last year to around 90 million barrels per day due to the COVID-19 crisis,” Eurasia Group told a customer note.

(Aaron Sheldrick, translated by Olga Devyatiarova. Editor Anna Kozlova)

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