Oil drops as U.S. inventories climb, raising oversupply concerns

10.06.2020 - Petr Mazaylo
Oil drops as U.S. inventories climb, raising oversupply concerns

Oil prices dropped on Wednesday after U.S. crude and fuel stocks rose, raising concerns about oversupply and declining demand amid the pandemic.

Brent crude futures lost 1.4%, or 59 cents, at $40.59 per barrel. U.S. West Texas Intermediate futures fell 1.9%, or 72 cents, at $38.22 per barrel.

Both benchmarks rose to their highest levels on Monday.

U.S. crude stocks rose 8.4 million barrels in the week ended June 5. Distillate fuel stocks, including heating oil and diesel fuel, climbed 4.3 million barrels. 

While the U.S. unemployment rate fell in April, job hiring dropped to a record low, indicating that the labor market could take years to fully recover.

In Japan, machinery orders fell at its fastest pace in two years. However, the refinery run rate rose to 54.5%.

Oil prices have been buoyed in recent weeks amid the record production cuts imposed by OPEC and its allies.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.net or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?