Industry
Oil fell in trade early Wednesday after industry data showed U.S. crude oil stocks rose last week, contrary to expectations of a downturn, and U.S. President Donald Trump halted markets by threatening not to sign the long-awaited COVID-19 relief bill.
PHOTO FILE: Oil pumps are seen, as oil and gas activity declines in the Eagle Ford Shale oil field due to the pandemic of coronavirus infection (COVID-19) and the decline in demand for oil throughout world, in Karnes County, Texas, USA, May 18, 2020. Photo taken May 18, 2020. REUTERS / Jennifer Hiller / File Photo
MELBOURNE: Oil fell in trade early Wednesday after industry data showed U.S. crude oil stocks rose last week, contrary to expectations of a decline, and U.S. President Donald Trump halted markets by threatening not to sign the long-awaited COVID-19 relief bill.
U.S. West Texas Intermediate (WTI) crude futures fell 46 cents, or 1per cent, to US $ 46.56 a barrel at 0142 GMT, while Brent futures fell 46 cents, or 0.9per cents, to the US $ 49.62.
Both contracts fell nearly 2per percent Tuesday, in a second straight session of decline, with Brent just managing to settle above US $ 50 before the data was released from the American Petroleum Institute (API).
API reported that crude deposits rose 2.7 million barrels per week to Dec. 18, compared to analysts ’expectations in a Reuters poll for a decline of 3.2 million barrels.
“With the rub of salt in today’s oil market lots, oil prices plummeted following another heavily bearish investment build to a consensus,” said Axi market chief strategist Stephen Innes, in a note.
Distillate stocks, which include diesel, heating oil and jet fuel, rose 1 million barrels, also came as a surprise against expectations for a 904,000 barrel barrel pullback.
However, gasoline stock fell 224,000 barrels, against expectations for a construction of 1.2 million barrels.
Oil fell further after Trump threatened not to sign a $ 892 billion U.S. coronavirus relief bill, saying he wants Congress to increase the amount of stimulus studies agreed by lawyers Monday .
COVID-19 cases continued to rise in the United States, with more than a million new cases in just six days, and Americans were again warned not to travel for Christmas, further declining fuel application.
“If the U.S. goes back anywhere near the edge of the COVID-19 lockout, it could be a beacon for oil collection for at least another 4-8 weeks, not to mention high price eliminates, “Innes said.
(Reporting by Sonali Paul; Editing by Lincoln Feast)