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Oil prices plunge after unexpected rise in US crude inventories

Oil plunges after rise in US inventories

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.  

The US dollar index continued to trade higher on Wednesday, hovering near its highest level this month, reaching a high of 97.95.

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