Oil is weakening due to a sharp increase in US inventories and an increase in the number of coronavirus cases, which heightened fears of oversupply and weakening demand. This is evidenced by data from the exchange trading on Investing.com on Wednesday, October 28.
In particular, the cost of December futures for Brent oil on the London ICE Futures exchange is $40.49 per barrel, which is $0.71 (1.72%) below the price at the close of the previous session.
At the same time, the price of WTI crude oil futures for December in electronic trading on the New York Mercantile Exchange NYMEX fell by $0.87 (2.20%) to the level of the previous session — to $38.70 per barrel.
The American Petroleum Institute (API) reports that US oil inventories rose 4.6 million barrels to about 495.2 million in the week ended Oct. 23, while analysts expected them to rise by 1.2 million barrels.
“The surplus-to-forecast surge in US oil inventories triggered a new sell-off, while concerns about supply disruptions due to Hurricane Zeta eased,” said Hiroyuki Kikukawa, general director of research at Nissan Securities.
Earlier it was reported that oil prices fell 1.68-1.76% due to concerns about demand caused by a new wave of the coronavirus epidemic.