Oil resumed declines as an industry report signaling a surprise jump in U.S. crude inventories stirred fears of a supply glut at a time when trade wars are jeopardizing the global demand outlook.
Futures in New York dropped as much as 1.2% after closing up 0.4% on Tuesday following a four-day drop. The American Petroleum Institute reported U.S. crude stockpiles rose by 3.55 million barrels last week, according to people familiar with the data. That compares with the median estimate in a Bloomberg survey for a 2 million barrel decline.
WTI for July delivery fell 18 cents, or 0.3%, to $53.30 a barrel on the New York Mercantile Exchange at 9:28 a.m. in Singapore after dropping as much as 62 cents earlier. It lost 19.3% from a high on April 23 through Tuesday’s close.
Brent for August settlement dropped 8 cents, or 0.1%, to $61.89 a barrel on London’s ICE Futures Europe exchange. The contract climbed 69 cents to $61.97 on Tuesday. The global benchmark crude was trading at a premium of $8.42 to WTI for the same month.
Source : Bloomberg