Oil prices slipped on Wednesday amid concerns over a supply glut as the COVID-19 pandemic continued to hit demand.
The West Texas Intermediate (WTI) for June delivery fell 0.57 U.S. dollar to settle at 23.99 dollars a barrel on the New York Mercantile Exchange, while Brent crude for July delivery decreased 1.25 dollars to close at 29.72 dollars a barrel on the London ICE Futures Exchange.
Oversupply and storage capacity concerns rattled markets despite data showed U.S. weekly crude inventories rose less than expected.
U.S. commercial crude oil inventories, excluding those in the Strategic Petroleum Reserve, increased by 4.6 million barrels during the week ending May 1, the U.S. Energy Information Administration reported on Wednesday. The reading was smaller than the average build of 7.1 million barrels forecast by analysts polled by S&P Global Platts.
Wednesday’s market movement followed noticeable gains in oil prices during the previous session. The U.S. oil benchmark jumped more than 20 percent on Tuesday, notching a five-day winning streak.
“We believe that the current euphoria on the oil market is premature. Even following a gradual resumption of economic activity, demand may remain below the 2019 level for years to come,” Eugen Weinberg, energy analyst at Commerzbank Research, said in a note on Wednesday.
Oil prices fall amid oversupply concerns
