A woman with a face mask walks on the ocean front while oil tankers are seen anchored off the coast of Long Beach, California, after sunset on April 25, 2020.
Apu Gomes | AFP | Getty Images
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.
U.S. West Texas Intermediate (WTI) crude futures fell 46 cents, or 1%, to $ 46.56 a barrel at 0142 GMT, while Brent crude futures fell 46 cents, or 0.9%, to $ 49.62 .
Both contracts fell nearly 2% Tuesday, in a second straight session of decline, with Brent just managing to settle above $ 50 ahead of the release of the data 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 an $ 892 billion coronavirus relief bill, saying he wants Congress to increase the number of stimulus investigations agreed by lawmakers Monday.
Covid-19 cases continued to soar in the United States, with more than a million new cases in just six days, and Americans were again warned to avoid traveling for Christmas, reducing fuel demand.
“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.