Crude oil futures ended lower on Wednesday, weighed down by concerns over a drop in energy demand after data from Energy Information Administration (EIA) showed smaller than expected drop in oil stockpiles and an increase in gasoline inventories. The EIA reported that US crude inventories fell by 1 million barrels for the week ended October 16. That followed a 3.8 million-barrel decline the week before. On average, analysts polled by S&P Global Platts forecast a weekly decrease of 1.9 million barrels. The EIA also said Gasoline supply, meanwhile, climbed by 1.9 million barrels, while distillate stockpiles fell by 3.8 million barrels last week. Meanwhile, the rising cases of COVID-19 in the US and Europe, in particular, have led to the potential for more economic shutdowns, which can impede demand for energy.
Crude oil futures for December fell $1.67 or 4 percent to settle at $40.03 a barrel on the New York Mercantile Exchange. December Brent crude dropped $1.43 or 3.3 percent to settle at $41.73 a barrel on London's Intercontinental Exchange.