With an increase in crude stocks in the US, oil fell below $ 41 on Wednesday, with more than 1% drop and the concerns over excess supply and weak demand due to a probable second wave of coronavirus crisis.
Indications from the American Petroleum Institute show that stocks are highly built up. Crude stocks are said to have increased by 8.4 million barrels, rather than falling as analysts estimated.
Brent crude LCOc1 fell 50 cents or 1.2% to $ 40.68 at 13:25 GMT. West Texas Intermediate (WTI) CLc1 fell 50 cents or 1.3% to $ 38.44.
Both benchmarks hit the three-month high on Monday. Brent has more than doubled since it fell below the $ 16 which is the lowest rate in 21 years in April. However, some analysts think that the market has soared, despite the continuing coronavirus pandemic.
Official government figures on US stocks will be released today.
Prices were supported by the Organization of the Petroleum Exporting Countries (OPEC), Opec + other producers and Russia, with a record oil supply cut of 9.7 million barrels (bpd) per day.
Governments which has been trying to limit the spread of the virus have recently alleviated most of the lockdowns, increased travel and economic activity, and boosted demand by supporting the market.
OPEC allies agreed to extend the record cut to the end of July on Saturday.
While the cooperation helps prices, the market has come under pressure after Saudi Arabia, Kuwait and the United Arab Emirates have decided not to extend the extra voluntary supply cuts.