Black commodity trading failed to continue to rise with a fall of more than 1% on Wednesday due to the threat of new sanctions in Europe due to the surge in Covid-19 cases and reports of disappointing US crude oil supply.
U.S. crude oil inventories jumped significantly last week by 4.58 million barrels, according to estimates published by the American Petroleum Institute (API) after an increase of 584,000 the previous week.
The start of the Asian market session saw the benchmark Brent crude futures drop 1.5% to $ 40.59 a barrel, while the US WTI fell 1.7% to $ 39.91 a barrel.
In the previous trading session, Brent crude was up almost 2%, while the US WTI was up 2.6%.
Meanwhile, pressure on world fuel demand is mounting as Europe is expected to announce several new sanctions.
Most recently, French President Emmanuel Macron is said to be announcing a one-month closure nationwide today to curb the spread of the increasingly alarming Covid-19 outbreak.
Meanwhile, energy companies and ports along the coast are preparing for the threat of hurricane Zeta en route to the Gulf of Mexico.
