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Oil falls on oversupply fears after build in U.S. crude stocks

28 October 2020 06:49 (UTC +04:00)

Oil prices slid more than 1 percent on Wednesday, paring the previous day’s gains, as a jump in U.S. crude inventories and surging COVID-19 cases raised fears of an oversupply of oil and weak fuel demand, APA reports quoting Reuters.

In early Asia, Brent crude was down 61 cents, or 1.5%, at $40.59 a barrel by 0033 GMT, having climbed nearly 2% the previous day. U.S. oil was down 66 cents, or 1.7%, at $38.91 a barrel, after gaining 2.6% on Tuesday.

U.S. crude oil and gasoline stocks rose last week, data from industry group the American Petroleum Institute showed, with crude inventories rising by 4.6 million barrels to about 495.2 million barrels, against analysts’ expectations in a Reuters poll for a build of 1.2 million barrels.