Oil prices dropped on Wednesday after industry data showed a larger-than-expected rise in US crude inventories, extending its prior losses.
The API said Tuesday that US oil stockpiles rose by 4.2 million barrels last week, far above market expectations for a build of 1.7 million barrels.
Meanwhile, disappointing US retail sales raised concerns over weaker consumption on the back of a resurgent in COVID-19 crisis. At the same time, the Fed said that the US economy has a “long way to go” before it returns to pre-pandemic levels.
Meanwhile, Reuters reported that Saudi Arabia had called on fellow members of the OPEC+ to be flexible in responding to oil market needs as it builds the case for a tighter output policy for next year.
The group will hold a full ministerial meeting on November 30th and December 1st to discuss policy. At around 06:45 AM GMT, WTI crude fell 0.5% to $41.24 a barrel, while Brent crude was down 0.2% to $43.65 a barrel.