Oil futures declined Wednesday, sending U.S. and global benchmark prices to their lowest settlements in over a week.
West Texas Intermediate crude for December delivery fell $1.67, or 4%, to settle at $40.03 a barrel on the New York Mercantile Exchange.
December Brent crude, the global benchmark, lost $1.43, or 3.3%, at $41.73 a barrel on ICE Futures Europe.
Both WTI and Brent crude saw their lowest front-month settlements since Oct. 12, according to Dow Jones Market Data.
U.S. government data showed that domestic crude supplies fell for a second week in a row, but by less than the market expected and failing to ease pressure from concerns over weaker demand.
The rising cases of COVID-19 in the U.S. and Europe, in particular, have led to the potential for more economic shutdowns, which can impede demand for energy.
The less-than-expected crude inventory draw reported by the U.S. Energy Information Administration Wednesday is “relevant” to the market, Lukman Otunuga, senior research analyst at FXTM, told MarketWatch. However, “oil prices remain more concerned with rising coronavirus cases across the globe and demand-side fears.”
On Wednesday, the EIA reported that U.S. crude inventories fell by 1 million barrels for the week ended Oct. 16. That followed a 3.8 million-barrel decline the week before.
Source: MarketWatch
