Oil prices plunged on Wednesday, giving up most of the previous day’s gains, amid a jump in US crude inventories.
Industry data showed US crude oil and gasoline stocks rose last week, with crude inventories rising by 4.6 million barrels to about 495.2 million barrels, beating expectations for a build of 1.2 million barrels.
Sentiment was also rattled by a statement from US President Donald Trump saying that the COVID-19 virus relief deal would likely come after the November election as the White House was unable to bridge differences with fellow Republicans in Senate as well as congressional Democrats.
On the virus front, the US and Europe saw a spike in virus infections in recent days, fanning fears of a weaker global fuel demand. Bearish sentiment was also fuelled by the resumption of Libya’s oil exports.
At around 06:15 AM GMT, prices of WTI crude sank almost 2% to $38.78 a barrel, while Brent crude tumbled 1,6% to $40.56 a barrel.