U.S. Oil Stockpile Builds, Prices Take A Hit – 16 June, 2020

An increase in U.S. crude inventories helped keep prices down with fears that an increase of covid infections will force harsher restrictions causing a drop in demand. U.S. West Texas Intermediate futures dropped 2.9% or $1.13 to $37.25 per barrel, while Brent crude futures fell 89 cents or 2.2% to $40.07 per barrel. U.S. crude inventories rose 3.9 million barrels last week to 543.2 million barrels as the U.S. surpassed 8 million coronavirus infections and an ongoing rise of cases across the country. OPEC member will meet this week to discuss measures to further enforce compliance for their commitment to curb global oil output, an initiative to cut 9.7 million barrels of output per day until the end of July.