Oil prices hit by record US crude inventories, bearish Fed
Oil prices fell on Thursday, hit by another record build-up in US crude inventories and the US Federal Reserve’s projections that the world’s biggest economy would shrink 6.5% this year.
Brent crude futures erased Wednesday’s gains, falling 4%, or $1.65, to $40.08 a barrel by 1156 GMT. US West Texas Intermediate (WTI) crude dropped 4.7%, or $1.87, to $37.73 a barrel.
Both benchmarks are set for their worst daily drop in two weeks.
“Prices are once again under pressure as concerns over the pace of the demand recovery intensified,” said Rystad Energy’s oil markets analyst Paola Rodriguez Masiu.
