Oil loses ground as US stocks increase

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Brent slips after growing US stockpiles add to the worry about oversupply

Oil futures dropped on Wednesday, extending losses from the previous day, after US crude stockpiles grew more than expected, adding to the worry about oversupply.

US crude inventories rose by a much bigger than expected 1.7-million barrels last week, according to industry group the American Petroleum Institute , well ahead of analysts’ expectations for a 300,000-barrel build. On Tuesday, both Brent and WTI contracts traded at their highest levels since prices collapsed in early March.

Still, the market remains concerned about a rising number of coronavirus cases in the US and elsewhere, said Kazuhiko Saito, chief analyst at Fujitomi.

 

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