2020.05.2909:58:00UTC+00Oil Prices Fall On Concerns Over US Fuel Demand

Oil prices tumbled on Friday after data showed lackluster fuel demand in the world's largest oil consumer.

Benchmark Brent crude for August delivery fell by 91 cents, or 2.5 percent, to $35.12 a barrel, while U.S. West Texas Intermediate crude futures were down as much as 3.3 percent at $32.58 a barrel.

According to the data released by the U.S. Energy Information Administration (EIA) on Thursday, crude inventories were up 7.9 million barrels in the week ended May 22, as against expectations of a near 2-million barrels drop.

Gasoline inventories dropped by about 700,000 barrels last week, beating expectations for an increase of 100,000 barrels. Distillate stockpiles were up 5.5 million barrels in the week, about three times the expected jump.

The American Petroleum Institute (API) reported late Wednesday that stockpiles expanded by 8.7 million barrels for the week ended May 22, compared with analysts' expectations for a draw of 1.9 million barrels.

Worsening U.S.-China tensions over Hong Kong also tempered investor optimism about demand recovery.

U.S. President Donald Trump is expected to speak later today in a press conference after China's parliament approved the controversial security law on Hong Kong, undermining the city's reputation as a financial hub with substantial autonomy.