Oil tumbles below $70 to its lowest level in nearly a month
- Oil prices sank to their lowest point in nearly a month, with the US benchmark shedding nearly 3%.
- The Energy Information Agency reported a fourth week of US crude buildup.
- Watch oil trade in real time here.
Oil prices tumbled Wednesday to their lowest level since September after government data showed US inventories rose more than expected and as stocks paused an earlier rebound.
Marking the highest buildup in nearly four months, the Energy Information Administration said stockpiles of crude oil in the US rose by 6.5 million barrels last week to more than 416 million barrels. That was more than twice the amount of buildup than analysts had forecast.
Caroline Bain, chief commodities economist at Capital Economics, thinks Hurricane Michael was partly behind a sharp drop in exports. But she also noted stockpiles have been climbing for four weeks, the longest streak of gains since last year.
"But crude stocks have been building for some weeks and should soon start to exert some downward pressure on prices," she added.
Not helping the mood, US stocks were on track for another round of losses Wednesday. Following a steep sell-off across markets last week, Wall Street has remained on edge about rising rates and global growth prospects.
"Although the current market conditions favor higher oil prices, global trade tensions still remain a threat to oil bulls down the road," Lukman Otunuga, a research analyst at FXTM, wrote in an email.
"Slowing global growth in the event of a full-blown trade war will most likely dent demand for crude."
Get the latest Oil WTI price here.
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