Surprised by the surge in US stocks, oil prices plummeted

 Oil prices fell lower after being shocked by data readings that unexpectedly showed an increase in U.S. crude oil supplies, sparking concerns over fuel demand.

In the Asian session, Brent crude futures traded lower around $ 70.63 a barrel, after plunging 2.8% in the previous session.

Meanwhile, US WTI crude oil traded dismal at $ 68.42 a barrel, after falling 3.4% following the release of the data.

This is the lowest level for both benchmarks since July 20th.

Official data from the U.S. Energy Information Administration (EIA) reported crude oil supplies increased by 3.6 million barrels last week, the biggest increase since the first week of May.

The resurgence of the coronavirus in several major countries has also put pressure on the black commodity trade, as China has tightened travel restrictions to curb the spread.

This makes investors worried that global demand for fuel will be affected if more sanctions are implemented and coronavirus cases continue to rise.

However, tensions in the Middle East have to some extent helped oil prices from falling lower. The US, UK, Israel blamed Iran for the attack on the Asphat Princess tanker last week, although it has been denied by Tehran.

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