Oil prices went south on Wednesday, as record high inventories and worries about a second wave of the coronavirus pandemic outweighed support from a gradual reopening of global economies.
Data from the U.S. Energy Information Administration released Wednesday showed that for the week ending June 19 stockpiles rose by 1.4 million barrels. Analysts had been expecting a build of 1.15 million barrels.
Brent crude was down $1.51, or 13.5%, to $41.12 U.S. a barrel, a day after hitting its highest level since a price plunge began in March.
Benchmark crude has climbed from below $16 in April but remains a third lower than its level at the end of 2019.
West Texas Intermediate crude fell $1.45, or 3.6%, to trade at $38.92 U.S. per barrel.
A rising number of coronavirus cases in the United States, China, Latin America and India has unnerved investors.
Analysts also say storage facilities around the world are almost full and if a second of wave of the pandemic hits demand, they will struggle to cope with the unused oil.
Further pressure on prices came from a bigger-than-expected rise in U.S. crude inventories, according to industry group the American Petroleum Institute.
There are also reports that China, the world’s top crude importer, is expected to slow crude imports in the third quarter, after record purchases in recent months.
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