Oil prices fell in early trading session on Wednesday after industry data showed that the US crude oil stocks rose last week as investors expected a decline. Oil fell further after US President Donald Trump threatened not to sign an $892 billion coronavirus relief bill, saying that he wants Congress to increase the amount in the stimulus checks.
US West Texas Intermediate (WTI) Crude Futures fell 46 cents about 1 per cent to $46.56 a barrel at 0142 GMT, while Brent Crude Futures slipped 46 cents about 0.9 per cent to $49.62 a barrel. Both WTI and Brent Crude Futures contract nearly fell 2 per cent on Tuesday, a staright second session of decline with Brent managed to settle above $50, before the release of data from the American Petroleum Institute (API).
API data shows that crude inventories increased by 2.7 million barrels in the week to December 18, as compared with the expectations of analysts in a Reuters poll for a decline of 3.2 million barrels. Distillate stock, which includes oil and petroleum products rose by 1 million barrels against analysts’ expectations for a reduction of up to 904,000 barrels. However, gasoline stocks declined by 224,000 barrels as compared with the expected increase of 1.2 million barrels.