Oil prices fell further on Wednesday following data from the US Energy Information Administration (EIA) showing surging US crude inventories and shrinking demand for gasoline. The data put additional weight on oil prices, which have been under intense pressure from the price war between Saudi Arabia and Russia as well as weak demand due to the coronavirus pandemic.
According to EIA’s data, US oil stocks rose by 13.8 million barrels last week, marking the sharpest one-week increase since 2016. The inventories are expected to continue rising at a similar pace in the coming weeks. US gasoline demand also continues to decline. Last week it suffered its most significant weekly drop ever due to the containment measures aimed at curbing the coronavirus spread.
The international benchmark Brent crude LCOc1 lost $1.61 (6.1%) to $24.74/barrel. Brent slumped to its 18-year low of $21.65/barrel on Monday. Meanwhile, US WTI crude CLc1 declined 17 cents to $20.31/barrel, after diving to as low as $19.90/barrel.
