Oil prices drop as US stockpiles report stokes fears of glut

Oil resumed declines as an industry report signaling a surprise jump in U.S. crude inventories stirred fears of a supply glut at a time when trade wars are jeopardizing the global demand outlook.

Futures in New York dropped as much as 1.2% after closing up 0.4% on Tuesday following a four-day drop. The American Petroleum Institute reported U.S. crude stockpiles rose by 3.55 million barrels last week, according to people familiar with the data. That compares with the median estimate in a Bloomberg survey for a 2 million barrel decline.

Oil is teetering on the edge of a bear market after falling almost 20% from a peak in late April as an aggressive U.S. trade policy stokes fears that the global economy is headed for a sharp slowdown.