Oil prices fell for a second day to their lowest in a week on a surprise build in U.S. crude inventories. Another concern is the increase in COVID-19 cases in India will drive down fuel demand in the world’s third-biggest oil importer.Brent futures fell $1.30, or 2.0%, to $65.27 a barrel, while U.S. West Texas Intermediate crude for June settled 2.11%, or $1.32, lower at $61.35 per barrel.
India, the world’s third-largest oil user, on Wednesday reported another record increase in the daily death toll from COVID-19. Crude inventories rose by 594,000 barrels in the week to April 16 to 493 million barrels, compared with analysts’ expectations in a Reuters poll for a 3 million barrel drop. U.S. East Coast inventories, fell to a record low at 7.9 million barrels.
The Organization of the Petroleum Exporting Countries and their allies including Russia, a group known as OPEC+, are heading for a largely technical meeting with major changes to the policy are unlikely, Russian Deputy Prime Minister Alexander Novak and OPEC+.The National Oil Corp of Libya declared force majeure on exports from the port of Hariga and said it could extend the measure to other facilities due to a budget dispute with the country’s central bank.