Oil plunges over 5% as pandemic surges, US crude stockpiles, output soar

NEW YORK (Reuters) – Oil prices fell more than 5%, sending Brent to a four-month low on Wednesday as surging coronavirus infections in the United States and Europe lead to renewed lockdowns and expectations that unsteady economic demand will worsen.

Also weighing on the market, U.S. crude stockpiles rose more than expected last week as production surged in a record build, according to the U.S. Energy Information Administration.

“Certainly the increase in oil production led to a unexpected build of crude oil, and given the additional lockdowns we are seeing in Europe, that is just further heaping bad news on the oil market,” said Andy Lipow, president of consultants Lipow Oil Associates.