Oil slips as Covid-19 and demand concerns weigh ahead of supply report
Oil slipped further below $56 a barrel on Wednesday as persistent concerns about demand countered industry data showing US crude inventories fell unexpectedly.
The American Petroleum Institute (API) said on Tuesday that US crude inventories fell by 5.3 million barrels. Analysts expect them to rise in a Reuters poll ahead of official inventory figures due at 1530 GMT.
Brent crude slipped 37 cents or 0.7% to $55.54 a barrel by 1447 GMT, giving up an earlier gain. US West Texas Intermediate (WTI) crude fell 31 cents to $52.30.
“Demand concerns should remain with us for some time,” Eugen Weinberg of Commerzbank said.
Brent on Jan. 13 hit an 11-month high of $57.42, having recovered from a 21-year low below $16 in April due to a demand recovery particularly in China and huge supply cuts by OPEC and its allies, known as OPEC+.
