Oil Tumbles 5% After Unexpected Surge in Crude Stockpile

 

Crude prices tumbled about 5% on Wednesday, falling below the key $40 per barrel support, after an unexpectedly large U.S. crude stockpile build for last week reported by the government reinforced concerns about depleting demand for fuel amid the worsening global outbreak of Covid-19.

 

 
New York-traded West Texas Intermediate, the leading indicator for U.S. crude prices, fell $2.05, or 5.2%, to $37.52 per barrel by 10:46 AM ET (14:46 GMT).
 
London-traded Brent, the global benchmark for oil, slid $1.87, or 4.5%, to $39.74.
 
U.S. crude stockpiles rose 4.3 million barrels, against expectations for an increase of 1.23 million barrels, the Energy Information Administration reported. That comes a week after crude stocks fell 1 million barrels.