Oil futures fell in early trade on Thursday paring instant gains last night, on concerns about fuel demand after data showed U.S. crude stockpiles rose week that is last rather than dropping as expected, and COVID-19 cases continued to rise around the world.
U.S. West Texas Intermediate (WTI) crude (CLc1) futures dropped 20 cents, or 0.5%, to $37.85 a barrel at 0056 GMT, after climbing 3.5% on Wednesday.
Brent(LCOc1 that is crude futures dropped 14 cents, or 0.3% to $40.65 a barrel, after rising 2.5% on Wednesday. The country’s crude stockpiles rose by 3 million barrels in the week to Sept. 4, data through the United states Petroleum Institute revealed on Wednesday as coronavirus case surged in a number of U.S. states. That compared with analysts’ forecasts of a draw of 1.4 million barrels.
The U.S. Energy Ideas Administration will launch official inventory that is weekly afterwards on Thursday, a day later than normal following the U.S. Labor Day holiday.
In a further sign that is bearish leading commodity traders are booking tankers to store crude oil and diesel on the water, with supply outpacing usage, according to trading sources and delivery data.
The stockpiles that are rising in front of a gathering on Sept. 17 of the market monitoring panel of the Organization of the Petroleum Exporting Countries (OPEC) and allies Russia that is including known as OPEC+, which in August trimmed supply curbs from earlier this year on expectations demand would enhance. Oil futures fell in early trade on Thursday paring instant gains last night.
“this problem is going to be front and centre … next week, where we expect a strong statement that if markets continue to weaken, the producer group are ready to trim output further,” Citi analysts said in a note.