Oil prices slide as US inventory report reflects demand weakness

Oil prices settled lower on Wednesday after US inventory figures showed demand weakening for refined products as global Covid-19 cases spiked.

Brent crude futures settled at $41.73 a barrel, down $1.43, or 3.3 per cent, as of 12:48 p.m. ET. US West Texas Intermediate (WTI) crude futures dropped $1.67, or 4 per cent, to $40.03. Both benchmarks rose in the previous session.

Crude inventories fell by 1 million barrels in the week to Oct. 16 to 488.1 million barrels, while gasoline stocks rose in another weak showing for fuel demand.

Overall product supplied, a proxy for demand, remained down 13 per cent on