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Oil Extends Slide On Oversupply Worries

Oil prices fell on Wednesday to extend losses from the previous session after the American Petroleum Institute (API) reported another build in crude oil inventories, adding to worries about oversupply.

Benchmark Brent crude dropped 1.2 percent to $42.11 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 1.5 percent at $39.77 a barrel.

According to industry group API, U.S. crude inventories rose by a much bigger than expected 1.75 million barrels for the week ending June 19, well ahead of analysts' expectations for a build of 300,000 barrels.

However, U.S. gasoline and distillate inventories fell, feeding optimism that fuel consumption is picking up amid easing of lockdown restrictions across the world.

The numbers from the Energy Information Institute are due later in the day, with analysts expecting a build of 299,000 barrels after an increase of 1.2 million the previous week.

Markets also remain concerned about rising coronavirus infection cases in the United States and elsewhere.

Tokyo reported a jump in infections to mark its highest daily tally since May 5 while Germany reported 712 new cases, fueling concerns about a second wave of coronavirus infections.

New cases of Covid-19 rose 25 percent in the United States in the week ended June 21 and the death toll in Latin America passed 100,000 on Tuesday, according to a Reuters analysis and tally.

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