Oil Prices Fell with Oversupply Concerns

Oil prices fell in trading on Wednesday, with expectations of an increase in crude oil inventories and a decline in oil prices due to lack of physical demand and fears over coronavirus pandemic that renewed concerns about the persistence of oversupply.

Brent crude for September delivery fell 0.3% to $ 42.97 a barrel, with NYMEX crude for August delivery falling 0.3% at $ 40.48 a barrel.

Data by American Petroleum Institute showed yesterday that oil inventories in the United States increased by 2.048 million barrels during the week ended July 3.

Despite the resumption of flights in some countries and the reopening of the economy, fears of Coronavirus outbreak in the United States put pressure on oil demand and crude may need longer than thought to return to pre-pandemic levels.