Oil falls to $30 as supply glut counters lockdown easings

NEW YORK: Oil fell below $30 a barrel on Wednesday as US crude inventories ticked up and gasoline demand remained below normal seasonal levels, offsetting hopes for a recovery in demand as some countries ease coronavirus lockdowns.

Brent crude has almost doubled since hitting a 21-year low on April 22, supported by expectations demand will recover and by a record supply cut led by the Organization of the Petroleum Exporting Countries. Still, the benchmark and its US counterpart remain weighed down by tepid demand and high volumes in storage.

Brent was down $1.32, or 4.2 per cent, at $29.65 a barrel, having risen in the past six sessions. West Texas Intermediate (WTI) crude fell $1.20, or 4.6 per cent, to $23.36.