WTI losses extend below $86 on Chinese demand-linked concerns

Oil prices have declined for the third consecutive day, to reach levels near $86. Concerns about a decline on demand from China are weighing on prices. US crude stockpiles increased above expectations last week.

Front-month WTI crude futures are depreciating for the third consecutive day on Wednesday. Concerns about a potential decline in demand from China, as COVID-19 infections increase, are hurting oil prices.

The US benchmark WTI dives about 1.3% on the day, reaching levels at $87.20 at the moment of writing, a nearly 7% sell-off from Monday’s peak, at $93.70.

The American Petroleum Institute, on Wednesday, affirmed that US oil stocks increased by 5.6 million barrels in the week of November 4, well above the 1.4 million barrel rise expected by the market, which has added negative pressure on crude oil.