On Thursday, oil prices stumbled, ending up in losses of more than 5% in the earlier session, scrutinized low by record high U.S Crude inventories. Also, worries that a rapid revival in coronavirus cases could affect a revival in fuel demand.
U.S. West Texas Intermediate (WTI) crude futures dipped 26 cents, or 0.7%, to $37.75 per barrel at 0245 GMT on Thursday, after collapsing $2.36 on Wednesday.
Also, Brent Crude futures knocked down by 30 cents, or 0.7%, to $40.01 per barrel after falling $2.32 on Wednesday. A day prior, the benchmark contract striked its intense price since early March, right before coronavirus lockdowns and a Saudi-Russian price war attacked markets.
Wednesday’s bargain came after when U.S. government’s data reflected crude stockpiles increased by 1.4 million barrels, driving inventories to a high record for third week straight.
However, the analysts revealed, it was mostly due to a flotilla of Saudi cargoes booked by U.S. refiners when prices plunged in the month of March. Those shipments are due to relax soon.
The only concern is that even if lockdowns are relieved, people will stay home because of the pre-assumption of health risks.