Oil down 6% on record US crude inventories, coronavirus resurgence fears

Oil prices fell 6% on Wednesday after US crude storage hit another record and coronavirus cases rebound in countries like Germany and surge in heavily populated areas of the United States.

Mounting coronavirus cases in the United States, which had its second-largest rise in new infections since the crisis began, China, Latin America and India have unnerved investors and pressured oil prices.

“These are all important oil demand centers. A second wave of infections and lockdowns will derail the global economic recovery and with it, oil demand and prices,” said Stephen Brennock of broker PVM.

Brent crude was down $2.52, or 5.9%, to $40.11 a barrel by 12:33 p.m. (1633 GMT) a day after hitting its highest levels since early March, just before the pandemic and Saudi-Russia price war hit the markets. US West Texas Intermediate (WTI) crude fell $2.56, or 6.3%, to $37.81 a barrel.