06.05.202019:14:00UTC+00Crude Oil Futures Snap 5-day Winning Streak, Settle Sharply Lower

After five successive days of gains, crude oil futures fell on Wednesday amid renewed concerns about excess supply in the market and worries about the outlook for near term energy demand.

West Texas Intermediate Crude oil futures for June ended down $0.57, or about 2.3%, at $23.99 a barrel, after hitting a high of $26.08 in early trades.

Brent crude futures declined by about 4% to $29.72.

According to the data released by the Energy Information Administration (EIA) this morning, crude inventories in the U.S. increased by 4.6 million barrels in the week ended May 1, much less than an expected increase of 8.7 million barrels.

Gasoline stockpiles were down by 3.2 million barrels last week, as compared to expectations for an increase of about 43,000 barrels.

Meanwhile, distillate stockpiles rose sharply by 9.5 million barrels, much higher than an expected increase.

The EIA report also said that crude oil output dropped to a 15-month low of 11.9 million barrels per day last week.

The American Petroleum Institute (API) report showed on Tuesday that U.S. crude inventories rose by 8.4 million barrels last week, as the demand destruction continues and storage space nears its upper limits.