- Inventories at key U.S. storage hub rose for fourth week
- APEC summit cancellation casts doubt on U.S.-China trade deal
Oil fell after a U.S. government report showed a bigger-than-expected build in domestic crude supplies and Chile canceled a summit where President Donald Trump was expected to sign a preliminary trade accord with China.
Futures fell as much as 2% in New York on Wednesday. The Energy Information Administration reported that American crude inventories rose by 5.7 million barrels last week, beating analyst forecasts, while supplies at the key Cushing,
Oklahoma, storage hub rose for a fourth week. Trump’s plan to ink a trade deal with China’s Xi Jinping were thrown into question when Chile canceled next month’s APEC summit where the two leaders planned to meet.
“Chile canceling the summit put some uncertainty as to potentially when the U.S. China trade talks will be resolved,” said Brian Kessens, portfolio manager at Tortoise, a Kansas firm that oversees more than $21 billion in assets. “That’s going to weigh on the crude oil markets.”