Oil Prices Fall as Equities see Renewed Pressure

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Oil futures fell Wednesday, under pressure following industry data that showed a modest rise in U.S. crude inventories. The drop for crude prices also tracks with a slump in global equities and a retreat for other commodities.

West Texas Intermediate crude for June delivery fell 1.39, or 2.1, to 64.10 a barrel on the New York Mercantile Exchange. July Brent crude, the global benchmark, was down 1.36, or 2, at 67.35 a barrel on ICE Futures Europe.

Brent on Tuesday briefly traded above 70 a barrel before turning south. Besides the strong technical resistance, increased risk aversion in view of the weakness on the stock markets and the massive slump in socalled cryptocurrencies is likely weighing on its price, as no doubt is the current news backdrop, said Eugen Weinberg, commodity analyst at Commerzbank, in a note.

Global equities were under renewed pressure Wednesday, with U.S. stockindex futures pointing to a sharply lower start for major indexes. Bitcoin fell below 40,000 for the first time in months, with crypto assets feeling pressure after the Peoples Bank of China apparently warned against using digital coins as payment.

Commodities have seen broad gains in 2021 on surging demand and supply constraints, including supplychain bottlenecks, as much of the world begins to emerge from the COVID19 pandemic. But several highflying commodities have set back in recent sessions. Lumber futures, for example, have fallen for seven straight sessions.

Meanwhile, the American…

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