Oil falls after large surprise build in US crude stocks

Oil prices slipped for the third consecutive session after unexpected data showed a large increase in American crude stocks, boosting fears of oversupply. The surprising build undermined the impact of production cuts imposed by OPEC+, and has stoked fears of weaker demand from China, the world’s second largest consumer of oil. June 4 sees a crucial OPEC+ meeting, with analysts suggesting that a deal to cut production further will not be announced. In addition, markets are increasingly concerned that unusually strong US labour market data released on Wednesday will result in a hike in interest rates by the Federal Reserve.