Petroleum prices fell on Wednesday as industry data showed a bigger than expected inventory build in the United States, where a surge in coronavirus cases could further dent fuel demand in the world’s biggest oil consumer.
Brent crude fell 43 cents, or 0.97%%, to $43.91 U.S. a barrel. West Texas Intermediate crude dropped 42 cents, or 1%, to $41.49.
The U.S. Energy Information Administration said Wednesday that inventory for the week ending July 17 rose by 4.9 million barrels. Analysts had been expecting a draw of 575,000 barrels.
The latest tallies have global coronavirus infections surged past 15 million on Wednesday with the pandemic gathering pace even as countries remain divided in their response to the crisis.
In his first pandemic press briefing in months, U.S. President Donald Trump said the outbreak would probably worsen before it gets better. His comments were a shift in strategy from his previously robust emphasis on reopening the U.S. economy.
However, industry analysts are opining the markets could soon view Trump’s words positively, as it was one of the administration’s most reasonable announcements on the pandemic.
Republicans and Democrats are also struggling to come to terms over more fiscal support for the economy, contrasting with the European Union deal that lifted oil prices on Tuesday.
Rising tension between the United States and China over the coronavirus and Hong Kong also pressured prices.
Beijing said that the United States had abruptly told it to close its consulate in Houston - a move that Beijing said it strongly condemns, threatening retaliation.
There are also signs that Iraq, the second-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), is still not meeting its target under an OPEC-led supply pact.
