Oil prices tumbled up to 5% on Wednesday to a fresh seven-month low, extending recent heavy losses following an unexpected build in U.S. crude stockpiles and fears of lower crude demand due to deepening U.S.-China trade tensions.
Brent crude futures LCOc1 were down $2.38, or 4%, at $56.56 a barrel by 10:36 a.m. CDT (1536 GMT), setting a fresh seven-month low. Prices have lost more than 20% since hitting their 2019 peak in April.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were down $2.66, or 5%, at $50.97.
Oil extended losses after government data showed U.S. crude stockpiles rose last week by 2.4 million barrels. Analysts had expected a decrease of 2.8 million barrels. At 438.9 million barrels, U.S. crude oil inventories are about 2% above the five-year average for this time of year.