Oil edges lower as US inventory build stokes supply fears

Oil prices dipped on Wednesday after industry data showing a build in US crude stockpiles added to worries about oversupply, but hopes for a swift economic recovery in China limited losses.

Brent crude futures fell 10 cents, or 0.2%, to $42.98 a barrel by 0417 GMT. US West Texas Intermediate (WTI) crude futures dropped 12 cents, or 0.3%, to $40.50 a barrel, holding to the narrow range of the past few weeks.

“The market is mixed as optimism about China’s quick economic rebound is offset by persistent worries that the rising coronavirus cases in the United States and other areas will stall a recovery in fuel demand,” said Satoru Yoshida, a commodity analyst with Rakuten Securities.