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LONDON (Reuters) – Oil fell 3 percent on Wednesday after weak economic data in China and the eurozone on crude oil demand and the unexpected rise in US oil inventories for the second week in a row.
Brent crude closed the session down $ 1.82, or 3%, to settle at $ 59.48 a barrel, reversing some of the significant gains recorded in the previous session when the United States announced the postponement of new customs duties on certain Chinese products.
World benchmark crude gained 4.7% in Tuesday's session, the largest percentage increase since a day since December.
West Texas Intermediate futures (WTI) dropped $ 1.87, or 3.3%, to $ 55.23 a barrel after a 4% increase in the previous session, the largest increase in one month.
China released disappointing data for the month of July, including a sharp drop in industrial production, which hit its lowest level in more than 17 years, highlighting the worsening economic divisions facing the world. intensification of the trade war with the United States.
The global economic slowdown is also hurting European economies. The data show that the decline in exports led to the contraction of the German economy in the second quarter.
Euro area GDP barely increased in the second quarter of 2019.
A second week of unexpected increases in oil stocks in the United States put additional pressure on the oil markets.
According to the Energy Information Administration, crude stocks in the world's largest economy rose 1.6 million barrels last week, while badysts forecast a 2.8 million barrel decline, as output refiners.
According to the Energy Information Administration's report, US oil inventories reached 440.5 million barrels, about 3% above the average of the last five years.
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