US crude inventories rose more than expected amid a slump in demand caused by restrictions to halt the coronavirus spread
US West Texas Intermediate crude futures fell as much as 2.1% to $24.05 a barrel and were down 14c at $24.41 a barrel at 2.01am GMT. WTI has snapped a five-day winning streak.Brent prices climbed 13.9% in the previous session, part of a six-day rise. Investors may be hesitant to increase their purchases of Brent as the contract has climbed too much over the past streak.
WTI also slipped after a report showed US crude inventories rose 8.4m barrels last week, more than expected, according to data from the American Petroleum Institute late on Tuesday. “We're talking about normalisation of supply and demand but we've got a long way to go,” said Lachlan Shaw, National Australia Bank's head of commodity strategy.
But analysts also pointed to comments by US shale producer Diamondback Energy saying it would consider reviving drilling plans if WTI held above $30 a barrel as a sign that producers will not want to shut in production for long.
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