Oil Prices Slip As Growing Stockpiles Signal Bumpy Fuel Demand Recovery

Brent crude futures dropped 14 cents, or 0.3% to $40.65 a barrel, after rising 2.5% on Wednesday.

As coronavirus case surged in several U.S. states, the country’s crude stockpiles rose by 3 million barrels in the week to Sept. 4, data from the American Petroleum Institute showed on Wednesday. That compared with analysts’ forecasts of a draw of 1.4 million barrels.

The U.S. Energy Information Administration will release official weekly inventory data later on Thursday, a day later than normal following the U.S. Labor Day holiday.

In a further bearish sign, leading commodity traders are booking tankers to store crude oil and diesel on the water, with supply outpacing consumption, according to trading sources and shipping data.