Oil prices decreased on Wednesday as concerns grew that U.S. fuel demand may not recover quickly as talks stalled on a post-coronavirus economic stimulus package, overshadowing a bigger-than-expected drawdown in U.S. crude stocks.
With investors watching a key producer countries’ ministerial meeting later in the day, Brent crude futures fell 38 cents, or 0.84%, to $45.08 U.S. a barrel, having edged up nine cents on Tuesday.
U.S. West Texas Intermediate crude futures were down 36 cents, or 0.84%, at $42.53 U.S. a barrel, having ended unchanged the previous day.
U.S. President Donald Trump on Tuesday said he postponed trade talks with China, adding that he does not want to talk to China right now.
However, figures from the American Petroleum Institute showed Tuesday U.S. crude inventories fell by 4.3 million barrels to about 512 million barrels, more than analysts’ expectations for a 2.7 million-barrel drawdown, while gasoline stocks rose.
Investors are keenly awaiting news from Wednesday’s meeting of a ministerial panel of the Organization of the Petroleum Exporting Countries and allies including Russia, a grouping known as OPEC+, which is set to review adherence to a previously agreed deal on oil output cuts.
Compliance with the cuts stood at 95-97% in July, according to OPEC+ sources and a draft report reviewed by Reuters on Monday.
