Early trades of Wednesday was gloomy for oil investors as the price of the commodity slipped to two per cent. It lost all the gains it made the previous day and more. The surge in the US crude stock and growing COVID-19 cases are attributed for such a slash in prices.
It is fanning fears in the mind of traders. Thus, causing an imbalance in supply and demand ratio.
The Brent crude oil slid to $40.44, losing 1.8 per cent or 76 cents per barrel at 0343 GMT. On the other side, the US oil plunged to $38.67, a below $40 mark per barrel, losing 90 cents or 2.3 per cent.
Notably, stocks of gasoline and oil rose the previous week as per the data from the American Petroleum Institute. The crude inventories eclipsed the expectations of experts and climbed to 495.2 million barrels by 4.6 million barrels