As US industry data showed a steep and surprising rise in crude oil stocks, oil prices dropped in a second consecutive session on Thursday, reducing soft prospects regarding the recovery from worldwide coronavirus deadlocks.
Oil have widened losses since Wednesday due to the recent decline and the suspicion with Russia’s commitment if they keep deep oil production cuts until the 9th of June.
West Texas Intermediate (WTI) crude futures were down 4.4%, or $1.44 at $31.37 a barrel at 0402 GMT after slipping as much as 5% to a low of $31.14 earlier in the session.
Brent crude futures dropped 3.2%, or $1.10 to $33.64 per barrel.
US crude oil stocks showed an increase of 8.7 million barrels in the week of May 22.
Gasoline stocks increased 1.1 million barrels more than 10 times what analysts had expected, and diesel and heating oil stocks rose nearly four times more 6.9 million barrels than expected.
It just seems that demand recovery continues, but it’s not strong enough to be self-sufficient.
The market will like to see if the data from official sources matches those above within Thursday.