Oil prices fell on Thursday after data showed that US crude inventories rose last week and the US Energy Information Administration (EIA) cut its forecast for oil demand, despite Brent crude remaining above $40 a barrel.
U.S. West Texas Intermediate crude futures were down to $37.44 a barrel after surging by 3.5% on Wednesday. Brent crude futures were down to $ 40.26 a barrel after rising by 2.5% yesterday.
The EIA will release official weekly inventory data later today, a day later than usual after Labor Day holiday earlier this week the US. The EIA has already lowered its forecast for global oil demand growth for 2020 by 210,000 barrels per day to 8.32 million barrels per day.
Industry data from the American Petroleum Institute (API) on Wednesday showed that crude oil inventories in the country unexpectedly rose by three million barrels in the week ending September 4th as coronavirus cases soared in several US states.
The increased inventories come ahead of a September 17th meeting of the Market Watch Committee of the Organization of the Petroleum Exporting Countries (OPEC who with OPEC+ in August scaled back supply restrictions based on expectations of improved demand.