Oil extends drop on US stockpiles build and China virus fear

OIL dropped for a second day after a bigger-than-expected build in U.S. crude inventories worsened sentiment in a market already nervous about the potential for a second coronavirus wave in China.

Futures in New York fell toward $37 a barrel after dropping 1.1% on Wednesday. American stockpiles swelled by more than 1.2 million barrels last week, the Energy Information Administration said, suggesting demand isn’t recovering as quickly as anticipated. Gasoline inventories shrunk, however, reflecting a slight pickup in consumption as the summer driving season gets underway.