Oil prices fell on Wednesday as ample supply pressured futures even as the prospect of economic stimulus from China boosted equities markets.
U.S. shares seesawed after a stronger open, a more muted reaction after Europe’s equities were buoyed by an 8 percent jump in Japanese stocks and the prospect of more stimulus from China.
Oil prices remained in retreat on concerns about swollen inventories, high global production and the increasing likelihood that Iranian barrels will return to export markets even as slowing growth in China threatens demand.
“The failure of oil markets to move higher on the back of this macroeconomic optimism calls fresh attention to the oil market’s weak direct physical fundamentals,” Tim Evans, energy futures specialist at Citi Futures, said in note.
Brent crude was down 88 cents at $48.64 a barrel at 12:19 p.m. EDT, after climbing 4 percent in the previous session.
U.S. crude was off 67 cents at $45.27, having eased on Tuesday as trading resumed after the Monday’s Labor Day holiday.