U.S. crude, gasoline and distillate stocks rose last week, the Energy Information Administration said on Wednesday.
Brent futures were down 95 cents, or 1.5%, at $61.02 US a barrel mid-morning Wednesday, after touching a four-month low at $60.21 during Tuesday's session. Information released Wednesday by the U.S. Energy Information Administration revealed commercial crude inventories surged by 6.8 million barrels in the week through May 31.
"The prolonged trade war has sparked fears of a global economic slowdown as well as weaker oil demand", tanker brokerage Eastport said on Tuesday.
Meanwhile, Saudi Energy Minister Khalid al-Falih has called recent volatility "unwarranted" and has said he expects OPEC to help to stabilize prices beyond the end global output pact that ends at the start of July.
Brent futures were down 33 cents, or 0.5%, at $61.64 a barrel by 0035 GMT.
A day earlier, the American Petroleum Institute estimated inventories had gone up by 3.545 million barrels last week, with gasoline inventories also swelling. JPMorgan Chase & Co. said Monday the chance of a USA recession in the second half had risen to 40 per cent from 25 per cent a month ago.
On Monday, the 3rd of June 2019, both UK and US crude had extended their losing streak, while trade tensions between United States and China had deepened and so far, what appeared to be a Mexican arrogance ahead of US-Mexico trade talk had added to investors' worries, as Mexican President appeared to be spurring heats over last weekend despite tangible threats of getting crippled following US tariffs on all Mexican exports.
To prevent oversupply and prop up the market, the Middle East dominated producer club of the Organization of the Petroleum Exporting Countries (OPEC), together with some allies including Russian Federation, has been withholding supply since the start of the year to prop up the market.
The oil market has been weighed down by concerns about slowing global growth due to the U.S. "To me, that means drawing down inventories from their now elevated levels", the Saudi-owned Arab News newspaper cited the kingdom's Energy Minister Khalid al-Falih as saying. Distillate fuel demand averaged 3.9 million barrels per day over the past four weeks, down by 0.8% from the same period a year ago.
Rising oil production and piling inventories in the USA have also been a thorn in the flesh for prices.
Sechin's new comments came as Russia's average oil output fell sharply on June 1-3 to 10.87 million barrels per day amid an oil contamination crisis, down from an average 11.11 million bpd in May.