WASHINGTON (dpa-AFX) - Oil prices fell sharply on Thursday to extend losses from the previous session on surging U.S. crude inventories and amid signs the worsening U.S.-China trade war will take a toll on global economic growth.
Benchmark Brent crude fell as much as 1.7 percent to $69.79 per barrel while U.S. West Texas Intermediate (WTI) crude futures were down 1.8 percent at $60.33 per barrel.
According to the data released by the Energy Information Administration, crude inventories in the U.S. rose as much as 4.7 million barrels last week, as against expectations for a drop of about 600,000 barrels.
The increase in commercial inventories came on the back of planned sales of U.S. strategic petroleum reserves (SPR) into the commercial market.
Rising inventories and a slowdown of refined product demand due to the negative impact of the ongoing U.S.-China trade war suggest that there could be further pressure on prices.
British chip designer ARM joined the growing list of global companies to disengage with Huawei, raising concerns a protracted trade war could derail global economic growth.
On the Brexit front, a key ally resigned from the cabinet late on Wednesday, adding to pressure on Prime Minister Theresa May to step down. A report from The Times said May is likely to announce her departure from office on Friday.
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