TOKYO- Oil prices fell on Wednesday after data showed a rise in crude and fuel stockpiles in the United States, reviving concerns about oversupply and falling fuel demand in the world’s largest crude consumer amid the coronavirus outbreak.
Brent crude futures fell 59 cents, or 1.4 percent, to $40.59 a barrel after gaining nearly 1 percent on Tuesday.
West Texas Intermediate (WTI) futures declined 72 cents, or 1.9 percent, to $38.22 a barrel, having risen about 2 percent in the previous session.
Both contracts rose to their highest in three months on Monday but some analysts think the market has risen too far, too fast as the coronavirus pandemic sweeps across the world with new infections posting daily highs.
“While oil has rallied substantially last month, the market’s recovery from an historic crash remains fragile, with higher prices likely prompting producers to turn the taps back on even as the pandemic continues to quash energy demand,” said Avtar Sandu, senior manager commodities at Phillip Futures.
US crude inventories climbed 8.4 million barrels in the week to June 5, API data showed, while a Reuters poll of analysts had indicated a draw of 1.7 million barrels.
Distillate fuel stockpiles, including diesel fuel and heating oil, rose by 4.3 million barrels, outpacing expectations for a 3 million barrel increase.
Official government figures on stockpiles from the Energy Information Administration are due later on Wednesday.