Oil prices tumbled for a third straight session on Wednesday on weaker oil demand outlook, soar in U.S. crude inventories and bearishness in sentiment.
Brent crude futures plunged more than 1 percent to 61 a barrel, resuming its fall since hitting a high of $64.06 on June 10.
Crude oil futures also tumbled to a low of $51.99 a barrel after falling to its lowest level since January 15 last week.
EIA cuts oil demand outlook
Global oil demand for 2019 was slashed by 160,000 barrels per day to 1.22 million barrels per day, according to the U.S. Energy Information Administration (EIA) monthly report released on Tuesday.
Meanwhile, there are mounting expectations that high oil consumers would cut their demand amid signs of slowdown in the global economy.
The low inflation figures in the United States may prompt policymakers at the Federal Reserve to cut interest rates during next week’s policy meeting.
President Donald Trump said yesterday the dollar's exchange rate was it at a “big disadvantage” compared to other major currencies, adding more pressure on the Fed.
US crude inventories rise
U.S. crude stockpiles showed an unexpected increase by 4.9 million barrels in the week ended June 7 to 482.8 million barrels, the American Petroleum Institute (API) data published on Tuesday showed.
Later in the day, the EIA report may signal a 1-million-barrel decrease in U.S. crude inventories last week, following a 6.8-million-barrel surge a week before.
In fact, the rise in crude inventories has overshadowed the rising expectations of OPEC resuming its supply cuts.
Sentiment remains bearish
Asian stocks fell on Wednesday, trailing overnight losses on Wall Street, as the sentiment remained bearish amid low expectations that Donald Trump and Xi Jinping will reach a deal at the G20 meeting later this month.
Safe haven gold rebounded strongly today to $1338.37 an ounce, rising
nearly 0.9 percent to recover losses incurred over the previous two sessions.