Oil futures prices sank on Wednesday as an unexpected rise in U.S. crude inventories added to investors’ worries that a prolonged trade war between Washington and Beijing could decrease demand on crude oil.
Brent crude extended its drop for a fourth straights session, losing nearly 2 percent on Wednesday, to trade at $70.75 a barrel.
Energy Information Administration EIA scored one for the bears by reporting a crude oil inventories in the United States edged up by 4.74 million barrels in the week ended May 17, following a rise of 5.431 million barrels in the previous week. That defied market expectations of a 0.599 million-barrel drop.
Gasoline inventories rose by 3.716 million, after a 1.123 million-barrel decline in the prior week, while analysts’ expectations were in favor of a 0.816 million-barrel decrease.
The prospect of a long-term trade war between the worlds tow biggest economies, the U.S. and China, also pushed prices south.