WASHINGTON (dpa-AFX) - Oil prices fell on Wednesday after industry data showed a bigger- than-expected inventory build in the United States. Surging coronavirus cases and rising U.S.-China tensions also fueled fresh concerns over demand recovery.
Benchmark Brent crude fell 37 cents, or 0.8 percent, to $43.95 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 45 cents, or 1.1 percent, at $41.47.
Industry group American Petroleum Institute (API) reported that U.S. crude inventories rose last week by 7.5 million barrels, compared with expectations for a draw of 2.1 million barrels.
The U.S. Energy Information Administration (EIA) will release official inventory data later in the day.
Brexit-related uncertainty, rising tensions between the United States and China and surging coronavirus cases around the world also clouded the short-term demand outlook.
The British pound weakened after reports suggested that the U.K. government is abandoning hope for a trade deal with the EU.
The government's central working assumption is that Britain will trade with Europe on World Trade Organization terms when the transition period ends on December 31, the Telegraph reported, citing senior sources.
The United States has asked Beijing to close its diplomatic consulate in Houston within the next 72 hours, the Chinese foreign ministry said, dealing another blow to the rapidly deteriorating relations between the two countries.
As the U.S. death toll from the coronavirus pandemic topped 142,000, President Donald Trump said the pandemic 'will probably, unfortunately, get worse before it gets better'.
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