Oil slips below $40 a barrel on record US crude inventories, Covid-19 fears

Investors are waiting to see if the producers, known as OPEC+, extend their record cut beyond July

Oil slipped below $40 a barrel on Thursday after a more than 5 per cent fall the previous session, as record-high US crude inventories and a resurgence in coronavirus cases cast doubt on a recovery in fuel demand. US crude stocks rose 1.4 million barrels, the Energy Information Administration said on Wednesday. This hit crude prices, although other details the EIA reported such as a fall in gasoline stocks as demand rose, lent limited support.

"The report was another nail in the bulls' coffin although it was not as depressing as the price fall suggests," said Tamas Varga of oil