(MENAFN - Baystreet.ca) Oil prices went for a plunge on Wednesday on weak global economic data and a rise in U.S. crude inventories, almost erasing the previous session's strong gains which followed the United States' move to delay tariffs on some Chinese products.
Brent crude lost 3.4%, at $59.19 U.S. a barrel, after rising 4.7% on Tuesday, the biggest percentage gain in a day since December. U.S. West Texas Intermediate (WTI) crude futures were down 3.75%, at $54.96 a barrel, having risen 4% the previous session, the most in just over a month.
Data released Wednesday by the Energy Information Administration showed crude oil inventories increased by 1.6 million barrels from the previous week.
Data from industry group the American Petroleum Institute (API) showed U.S. crude stocks unexpectedly rose last week. API also said rude inventories increased by 3.7 million barrels to 443 million, compared with analyst expectations for a decrease of 2.8 million barrels
China reported a stream of unexpectedly weak data for July, including a surprise drop in industrial output growth to a more-than-17-year low, emphasizing widening economic cracks as the trade war with the United States intensifies.
Benchmark crude prices surged on Tuesday after U.S. President Donald Trump backed off his Sept. 1 deadline for 10% tariffs on some products, affecting about half of the $300-billion target list of Chinese goods.