Oil down with estimate of large US crude stock buildup

Crude oil inventories in US expected to increase by 8.4M barrels for week ending June 5

By Ovunc Kutlu

ANKARA (AA) - Oil prices were down on Wednesday with the forecast of a large US crude inventory buildup, which would add to the already high glut of supply in the global market.

International benchmark Brent crude was trading at $40.60 per barrel at 0615 GMT for a 1.4% decline after closing Tuesday at $41.18 a barrel.

American benchmark West Texas Intermediate (WTI) was at $38.20 a barrel at the same time for a 1.9% loss after ending the previous session at $38.94 per barrel.

Crude oil inventories in the US are expected to increase by 8.4 million barrels for the week ending June 5, according to the American Petroleum Institute's (API) estimate on Tuesday.

The Energy Information Administration (EIA) will release official data on the weekly change in the US' crude oil stocks and production later on Wednesday.

If stocks increase in line with expectations, more additions would be made to the already high oversupply in the global oil market to keep downward pressure on prices.

On the demand side, the market awaits the easing of coronavirus-related quarantine measures in Asia, Europe and the US.

If economies around the world return to normal in the coming weeks, overall oil consumption around the world would rise to push prices higher.

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