Oil futures sank on Wednesday as an unexpected build in U.S. crude stockpiles compounded investor worries that a prolonged trade war between Washington and Beijing could dent crude demand.
U.S. West Texas Intermediate crude futures for July delivery were down $1.96, or 3.1 percent, at $61.17. Brent crude futures were down $1.43, or 2%, at $70.75 at barrel around 1:39 p.m. ET (1739 GMT).
U.S. crude inventories swelled by 4.7 million barrels in the latest week to their highest since July 2017, the U.S. Energy Information Administration reported. Analysts polled by Reuters had forecast a decrease of 599,000 barrels as refineries cut output.
“It’s at the extreme end of the range of possibilities for a bearish report,” said Bob Yawger, director of futures at Mizuho in New York. “It’s about as bad as it could have been considering the fact that driving season is so close.” Read More