Oil Extends Losses

Oil Extends Losses
Oil Extends Losses

Oil fell for a second day on Wednesday as concerns over global economic headwinds deepened, erasing the price gains booked after top crude exporter Saudi Arabia's surprise weekend pledge to deepen output cuts.
Brent crude futures were down 56 cents, or 0.7%, at $75.73 a barrel. 
The US West Texas Intermediate crude futures fell 52 cents, also 0.7%, to $71.22 a barrel, Reuters reported. 
Both benchmarks jumped more than $1 on Monday after Saudi Arabia's decision over the weekend to reduce output by 1 million barrels per day to 9 million bpd in July.
"The fears of recession, as more and more sombre economic readings point towards a slowdown, have kept a lid on oil prices, eroding all OPEC+'s efforts to keep prices afloat," Priyanka Sachdeva, an analyst at Phillip Nova, said in a note.
US gasoline inventories rose by about 2.4 million barrels and distillates inventories were up by about 4.5 million barrels in the week ended June 2, market sources said on Tuesday, citing American Petroleum Institute figures.
The unexpected buildup of fuel stockpiles raised concerns over consumption by the world's top oil user, especially as travel demand grew during the Memorial Day weekend.

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