Oil falls due to U.S. crude stock build, virus fears
Oil prices fell again on Thursday, following the 5% drop from the last session, as a record build in U.S. crude stocks and a surge in new coronavirus cases are feared to weigh on fuel demand.
Brent crude futures slid 0.7%, or 30 cents, to $40.01 per barrel. U.S. West Texas Intermediate crude futures were down 0.7%, or 26 cents, at $37.75 per barrel.
Wednesday’s selloff followed the report of a 1.4-million-barrel build in U.S. crude stockpile. However, analysts said that it was due to the Saudi Arabian shipments booked by refiners when prices dropped in March. The cargoes are due to ease soon.
The surge in new coronavirus infections in several U.S. states, as well as parts of South America and South Asia is expected to stall the recovery of fuel demand.
Market strategists reported that driving in many U.S. states was flatlining.