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2020.06.1010:18:00UTC+00Oil Prices Fall On Oversupply Concerns

Oil prices fell sharply on Wednesday amid oversupply concerns after industry data showed a rise in crude and fuel stockpiles in the United States.

Benchmark Brent crude fell almost 2 percent to $40.38 a barrel, after rising nearly 1 percent on Tuesday.

West Texas Intermediate (WTI) futures were down as much as 2.5 percent at $37.98 a barrel, after having risen nearly 2 percent the previous day.

The American Petroleum Institute reported late Tuesday that U.S. crude inventories rose by 8.4 million barrels in the week to June 5, compared with market expectations of a draw of 1.7 million barrels.

Gasoline stockpiles fell by 2.9 million barrels, while distillate fuel stockpiles, including diesel fuel and heating oil, climbed by 4.3 million barrels, the report showed. Crude stocks at the Cushing, Okla., storage hub, meanwhile, fell by 2.3 million barrels for the week.

Official government figures on stockpiles from the Energy Information Administration will be released later in the day.

Weak data from Japan, China and France also rekindled concerns about growth.

Japan's machinery orders slumped in April at their quickest pace in nearly two years, official data showed.

China's factory gate prices fell deeper into deflation in May, while French industrial production dropped 20.1 percent in April from March, when output was down 16.2 percent.

The Organization for Economic Cooperation and Development (OECD) forecast the global economy would contract 6.0 percent this year before bouncing back with 5.2 percent growth in 2021.

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