Investing.com - Oil prices extended losses on Wednesday, with crude falling below the $56 per barrel level as Saudi Arabian production came back online and concerns over the demand outlook weighed.
- Crude oil WTI futures dropped to $55.82 by 9:41 AM ET (1:42 GMT), down $1.45, while Brent was down $1.57 to $61.54 a barrel.
- Prices have been hit by reports that Saudi Arabia is recovering more quickly than expected from attacks on its oil infrastructure.
- "Simply put, the geopolitical risk premium has all but vanished and bullish catalysts suddenly appear in short in supply across the oil market," analysts at PVM said in a research note.
- A harsher tone on trade by U.S. President Donald Trump in comments in the UN on Tuesday reignited concerns over the outlook for global growth.
- Prices were also hit after the American Petroleum Institute said U.S. crude inventories rose by a larger than forecast 1.4 million barrels last week.
- Inventory data from the U.S. Energy Information Administration will be released later in the day.