Crude Oil Prices Fall on Unexpected Surge in US Stocks

Oil prices fell after a sector report showed an unexpected increase in US crude stocks last week, stoking fears that a new surge in Covid-19 infections could reduce demand for fuel.

Brent crude futures fell 36 cents, or 0.5 percent, to $ 68.98 a barrel at 0628 GMT, giving up some of the gains recorded on Tuesday, when it rose 1.1 percent.

WTI crude contracts also fell 36 cents, or 0.5%, to record $ 66.84 a barrel after rising by one dollar on Tuesday.

“The market came under some pressure in early morning trading today, after a surprising stockpile report predicting a decline in prices from the American Petroleum Institute,” ING Economics analysts said in a note.

Two market sources said that API’s report showed an increase in US crude stocks by 806,000 barrels for the week ending on July 16.

Ten analysts polled by Reuters had expected stocks to fall by about 4.5 million barrels on average.

Investors are looking to data from the US Energy Information Administration to see if it will confirm the increase in inventories, which will come after declines that lasted for eight consecutive weeks.