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Oil Futures Settle Sharply Lower

Oil Futures Settle Sharply Lower
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Crude oil prices drifted lower on Wednesday, weighed down by concerns over a drop in energy demand after data from Energy Information Administration (EIA) showed smaller than expected drop in oil stockpiles and an increase in gasoline inventories.

Reports showing a surge in new coronavirus cases in several states across America further added to demand concerns.

West Texas Intermediate Crude oil futures for December were down $1.67 or about 4% at $40.03 a barrel.

Brent crude futures were down by about $1.50 or 3.5% at $41.65 a barrel.

The EIA data said crude oil inventories fell 1 million barrels last week, against expectations for a draw of 1.02 million barrels. Crude stockpiles dropped by about 3.8 million barrels a week earlier.

Crude oil stored at Cushing, Oklahoma, increased 975,000 barrels compared to an expected build of 1.1 million barrels.

Gasoline inventories were up by 1.9 million barrels last week, while distillates stockpiles were down 3.8 million barrels.

The American Petroleum Institute (API) on Tuesday reported a build in crude oil inventories of 584,000 barrels for the week ending October 16, adding to concerns about a global supply glut. Analysts had forecast an inventory draw of 240,000 barrels.

The material has been provided by InstaForex Company – www.instaforex.com