Oil futures extended heavy losses from the prior session on Wednesday, as market participants looked ahead to fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of demand in the world’s largest oil consumer.
A day earlier oil prices have fallen after data showed that China’s factory sector contracted at the fastest rate in three years, while manufacturing activity in the U.S. fell fueling concerns over the health of the global economy.
The U.S. Energy Information Administration is to release its weekly report at 15:30BST later Wednesday. The data was expected to show that crude stockpiles rose by 0.1 million barrels last week, while gasoline stockpiles were forecast to decline by 1.4 million barrels.
However, the American Petroleum Institute, an industry group, said that U.S. crude inventories rose by 7.6 million barrels, compared to expectations for a drop of 0.8 million