Crude Oil Falls to $37 as Stockpiles Rise

MIDLAND, TX – Crude Oil held onto its losses among broader markets as a swelling U.S. crude stockpile added additional uncertainty over the economic impact of rising coronavirus cases worldwide.

Futures in New York fell by as much as 6.2 percent on Wednesday, the largest intraday drop in almost three weeks. An Energy Information Administration report indicated that domestic oil inventories rose by roughly 4.32 million barrels just last week, which is also the biggest build noted since back in July.

West Texas Intermediate crude futures for December delivery fell by $2.18 down to $37.39 a barrel at 9:33 a.m Wednesday morning. Brent futures for the same month also dropped by $2.05 to $39.15 a barrel on the London-based ICE Futures Europe exchange.

Additionally, prices were trading alongside U.S. equities earlier in the session, with a majority of weakness being seen from Boeing Co. and Microsoft Corp.

Meanwhile, a recent  surge in coronavirus cases across Europe is forcing local governments to consider tougher restrictions to battle the spread of the virus. U.K. Prime Minister Boris Johnson could be forced to impose a national lockdown as the country could possibly face a prolonged winter peak amidst the pandemic.