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Brent crude futures <LCOc1> were down $1.60, or 3.8%, at $39.60
a barrel by 1115 GMT, having climbed nearly 2% on Tuesday. U.S.
crude <CLc1> was down $1.84, or 4.6%, at $37.73 after a 2.6%
jump the previous day.
U.S. crude oil and gasoline stocks rose last week, data from the
American Petroleum Institute showed, with crude inventories
rising by 4.6 million barrels to about 495.2 million barrels,
well above analyst expectations of a 1.2 million barrel build in
a Reuters poll of analysts. [EIA/S]
"With hefty stock builds across the board in the headline API
numbers, it is not all that surprising the oil price is moving
lower this morning while waiting for the official EIA numbers
this afternoon," said BNP Paribas analyst Harry Tchilinguirian
said.
Energy companies and ports along the U.S. Gulf Coast prepared on
Tuesday for Hurricane Zeta as it entered the Gulf of Mexico.
Meanwhile, the United States, Russia, France and other countries
have registered record numbers of COVID-19 cases in recent days
and European governments have introduced new curbs to try to
rein in the fast-growing outbreaks.
U.S. President Donald Trump acknowledged on Tuesday that a
coronavirus economic relief package is likely to come after the
presidental election, with the White House unable to bridge
differences with fellow Republicans in the U.S. Senate as well
as congressional Democrats.
Adding to pressure on oil markets, Libya's production is
expected to rebound to 1 million bpd in the coming weeks.
More bullish for oil prices was news that China's domestic
aviation fuel consumption rebounded close to pre-pandemic levels
in September, buoyed by a fast recovery in passenger travel and
cargo freight, industry sources said.
(Reporting by Noah Browning and Yuka Obayashi; Editing by David
Goodman)
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