Early on Wednesday, oil prices slipped as data showed that US crude stockpiles rose against expectations, striking the concerns of the outlook of demand.
At 00.19 GMT, Brent crude oil futures lost 0.3% or 13 cents to USD42.95/barrel while the US WTI crude oil futures slid down by 0.3% or 10 cents to USD40.52/barrel.
The losses were driven by the Tuesday report from the American Petroleum Institute (API), stating that in the week ended Friday 3, US crude oil stockpiles climbed against predictions for a draw. However, the inventories of gasoline and distillate oil slumped by more than estimated.
Also on Tuesday, the US Energy Information Administrations (EIA) estimated that in 2020, the country’s crude oil output would drop by 600,000 bpd. That is a smaller fall from the previous forecast of a 670,000 bpd fall.
The EIA also projected the global oil demand to recover by the end of next year, by 101.1 million bpd by the fourth quarter of 2021.
Nevertheless, the prospect of the easing of oil output cuts from the Organization of the Petroleum Exporting Countries and its non-member allies (OPEC+) starting August, combined with the softer US securities weighed down expectations.
Another factor putting more pressure on demand outlook is the soaring number of confirmed coronavirus infections, notably in the US. On Tuesday, the number pushed past 3 million.
