Oil dropped 4 per cent to below $30 a barrel on Wednesday as US crude stockpiles ticked up and diesel inventories swelled, offsetting OPEC-led cuts in production and hopes for a recovery in demand as some countries ease coronavirus lockdowns.
Brent settled down $1.25, or 4 per cent, at $29.72 a barrel, the first loss after six consecutive sessions of gains. West Texas Intermediate (WTI) crude fell 57 cents a barrel to $23.99.
Brent crude has almost doubled since hitting a 21-year low on April 22. But the market was cautiously eyeing a deal led by the Organization of the Petroleum Exporting Countries to cut output by a record 9.7 million barrels per day from May 1, equivalent to about 10 per cent of world demand before the coronavirus crisis led to a slide in consumption and prices.
