Oil down as US supply larger than expected

LONDON, June 24, 2020 – Oil was down on Wednesday morning in Asia, with investors digesting a second consecutive week of increases in the crude oil supply.

The American Petroleum Institute (API) estimated a large build of 1.749 million barrels for the week ended June 19 on Tuesday. The prediction was much bigger than the estimated 300,000 barrel-build in forecasts prepared by Investing.com.

Brent oil futures fell 0.49% to $42.42 by 10:05 PM ET (3:05 AM GMT), giving up its earlier gains. WTI futures slid 0.64% to $40.11.

Investor sentiment continues to be cautious over increasing fears of an oversupply, with OPEC+ production cuts set to end in July but with ever increasing cases of the Covid-19 virus.

There are over 9.2 million cases globally as of June 24, according to Johns Hopkins University data.

Meanwhile, all investor eyes are now on whether the US Energy Information Administration’s (EIA) will also predict a build in the supply later in the day.

By Investing.com: https://www.investing.com/news/oil-falls-over-biggerthanexpected-us-supply-2210503

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