Oil edges lower after report signals expanding US stockpiles

Oil edged lower in New York after an industry report signaled another gain in U.S. crude stockpiles, and as the spread of the coronavirus continued to cloud the prospects for an economic recovery.

Futures slipped to trade near $40 a barrel, but were still near a three-month high reached on Monday. The American Petroleum Institute reported crude inventories climbed by 1.75 million barrels last week, according to people familiar, which would be a third weekly increase if confirmed by government data Wednesday. Meanwhile, Anthony Fauci, the top U.S. infectious-disease expert, told Congress he was seeing a “disturbing surge” in new cases.

Oil has rallied since plummeting below zero in April as producers slashed crude output and regions across the world lifted lockdown restrictions.