Oil retreats on surprise rise in U.S. stocks, weakening demand outlook – Reuters

SourceReuters
SectorFinancial Markets
CountryGulf

SINGAPORE, July 21 (Reuters) – Oil prices fell on Wednesday after an industry report showed an unexpected build-up in U.S. oil inventories last week, which heightened worries about a resurgence in COVID-19 infections potentially dampening fuel demand.

Brent crude futures fell 52 cents, or 0.8%, to $68.83 a barrel at 0354 GMT, giving up Tuesday’s 1.1% gain.

U.S. West Texas Intermediate (WTI) crude futures dropped 50 cents, or 0.7%, to $66.70 a barrel, after rising $1 on Tuesday.

The market “has come under a bit of downward pressure in early morning trading today after a bearish and rather surprising inventory report from the API,” ING Economics analysts said in a note, referring to weekly figures from the American Petroleum Institute.

U.S.

crude stocks rose by 806,000 barrels for the week that ended July 16, according to two market sources, citing American Petroleum Institute figures.

By comparison, 10 analysts polled by Reuters had estimated, on average, that crude stocks fell by about 4.5...read more...