Oil prices slip as US inventory build stokes fears of supply glut

Oil prices eased on Wednesday after a surprise build-up in US crude stockpiles stoked concerns about a global supply glut and a spike in global Covid-19 cases fuelled fears of a stalled oil demand recovery.

Brent crude futures were at $42.53 a barrel, down 63 cents, or 1.46%, as of 1349 GMT, while US West Texas Intermediate (WTI) crude futures slipped 75 cents, or 1.8%, to $40.95. Both benchmarks rose in the previous session.

“Lower European equity markets and a surprise crude build are in my view the factors weighing on oil prices today. The market is probably also wanting to see if the EIA confirms the API report later today and any news on a fiscal package in the US,” Giovanni Staunovo, analyst at UBS Bank, said.