Crude oil costs dropped to a near 10-week low on Wednesday, after main data revealed an unforeseen dive in U.S. unrefined stockpiles last week.
Traders were also worried that escalation in the trade dispute in between the United States and China could lead to a considerable downturn in oil demand development next year.
Crude oil futures for September shipment ended down $2.03, or 3%, at $65.01 a barrel, after decreasing to a low of $64.51 in the session.
On Tuesday, crude oil futures ended down $0.16, at $67.04 barrel, after having advanced to $68.36 a barrel earlier.
According to data released by the U.S. Energy Details Administration, petroleum stocks rose by 6.8 million barrels in the week ended August 10, as against expectations for a drop of about 2.4 million barrels. Following the jump, total U.S. petroleum inventories stood at 414.2 million barrels since last week.
Gas inventories fell by 740,000 barrels recently, compared to expectations for a drop of 583,000 barrels. Extract stocks consisting of diesel were up by 3.5 million barrels last week.
After market hours on Tuesday, the American Petroleum Institute reported a 3.7 million barrels dive in unrefined stocks last week. The report also stated that unrefined stocks at the Cushing, Oklahoma, shipment center increased by 1.6-million barrels.
As the 2nd stage of U.S. sanctions on Iran is set to enter force in November, the OPEC decided in June to increase unrefined production.
Regardless of Saudi Arabia lowering its production in July, global oil production in the month increased by 680,000 bpd, with overall production of OPEC countries increasing by 41,000 bpd to 32.32 million bpd.
The OPEC recently pegged world oil need at 1.43 million bpd in 2019, below 1.64 million bpd in 2018.
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