Oil prices fell on Thursday after data showed that US crude inventories rose unexpectedly. As coronavirus cases continue to increase in many countries, the slow recovery in fuel demand raises concerns.
West Texas Intermediate (WTI) crude CLc1 futures fell 24 cents, or 0.63%, to $37.81 a barrel at 0417 GMT, after climbing 3.5% on Wednesday.
Brent crude LCOc1 futures dropped 17 cents, or 0.42% to $40.62 a barrel, after rising 2.5% on Wednesday.
The oil market is under the pressure of both decreasing demand and increasing supply expectations. The 2020 world oil demand growth forecast fell 210,000 barrels a day to 8.32 million barrels a day. As for another sign of decline in demand, according to trade sources and shipping data, leading commodity traders are booking tankers for floating storage purposes.
Increasing stocks data preceded the market watch panel meeting of the Organization of Petroleum Exporting Countries (OPEC) and its allies on 17 September. So, the amount of cut-off applied in May, June and July has worked and the situation should be reviewed. If markets continue to weaken next week, a strong announcement that his group will be ready to cut production will not come as a surprise.