2019.09.2506:14:00UTC+00Oil Prices Tumble Amid Risk-off Sentiment

Oil prices fell sharply on Wednesday to extend losses from the previous session after Reuters reported, citing sources that Saudi Arabia has restored its oil production capacity to 11.3 million barrels per day, maintaining a faster than expected recovery after the Sept. 14 attacks on its oil facilities.

Global benchmark Brent crude fell nearly 1.5 percent to $62.17 a barrel, while U.S. West Texas Intermediate crude futures were down 1.3 percent at $56.56 a barrel.

Worries about the U.S. and U.K. political turmoil, renewed concerns about slowing global growth and fading hopes of a U.S.-China trade deal also weighed on the commodity.

A U.S.-China trade deal appeared elusive after U.S. President Donald Trump delivered a stinging rebuke to China's trade practices on Tuesday at the United Nations General Assembly and added he would not accept a "bad deal" in trade talks with the country.

Investors watched for developments in the United States after House Speaker Nancy Pelosi announced a formal impeachment inquiry into Trump amid allegations he sought Ukraine's help to smear former Vice-President Joe Biden, who is the front-runner for the Democratic presidential nomination in 2020.

Growth worries linger as the Asian Development Bank downgraded its growth forecasts for the region, reflecting gloomier prospects for international trade.

"Downside risks to the outlook have intensified" with repercussions beyond trade, the Manilla-based bank said. "The conflict will likely persist at least into 2020 and could broaden to involve other regional economies."

Meanwhile, Trump denounced Iran for "bloodlust" but said he saw a path to peace with the country.

Investors await inventory data from the U.S. Energy Information Administration later in the day after industry data showed an unexpected build in U.S. crude inventories last week.