Crude oil prices drop by over 5%

Crude oil prices dropped more than 5% and falling below the key $40 per barrel support, at the American trading session mid-week.

The slide is attributed to unexpectedly large U.S. crude oil inventories for last week reported by the government, which reinforced concerns about depleting demand for fuel amidst the worsening global outbreak of Covid-19.

At the time of writing, Brent crude traded at $39.44/Barrel down more than 5%.

The macros weighing down on oil prices are reports coming from the EIA showing U.S. crude stockpiles gained 4.3 million barrels, against an increase of 1.23 million barrel as anticipated by energy analysts, showing there is soft demand for gasoline in the world’s largest economy.

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