Oil declined after an industry report showed a rise in US crude stockpiles, deepening losses after closing below $50 a barrel for the first time in a year amid fears the lethal coronavirus will imperil crude demand.
Futures fell 1.5% in New York Tuesday after the American Petroleum Institute reported that U.S. crude inventories rose 4.18 million barrels last week, according to people familiar with the data. The rise intensified fears of a supply glut that has rattled investors with demand uncertainty stemming from China’s coronavirus outbreak.
“We’re getting close to the bottom and it’s clear OPEC is not going to sit on their hands,” said Phil Flynn, an analyst at Price Futures Group Inc. “There’s some dire predictions being priced in right now.“
