CORRECTED-Oil falls as India crisis, U.S. stocks build dampen confidence in fuel demand recovery

(Corrects volume to 2.1 million bpd, not 2.21 million, in
paragraph 6)
By Sonali Paul
MELBOURNE, April 28 (Reuters) - Oil prices dropped on
Wednesday, paring overnight gains, with soaring COVID-19 cases
in India and a bigger-than-expected build in U.S. crude stocks
offsetting confidence shown by OPEC and its allies in a solid
recovery in global fuel demand.
Brent crude LCOc1 futures fell 26 cents, or 0.4%, to
$66.16 a barrel at 0205 GMT, paring a 1.2% gain from Tuesday.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell
23 cents, or 0.4%, to $62.71 a barrel, after gaining 1.7% on
Tuesday.
The American Petroleum Institute industry group reported
crude stocks rose by 4.319 million barrels, according to two
sources, which was a much bigger build than analysts in a
Reuters poll had estimated.
The more closely watched weekly inventory data from the U.S.
Energy Information Administration (EIA) is due at 1430 GMT on
Wednesday.
U.S. crude had opened higher on Wednesday, after a market
monitoring panel of the Organization of the Petroleum Exporting
Countries and allies, together called OPEC+, stuck with plans to
bring 2.1 million barrels per day (bpd) back to the market in
three stages between May and July. The volume includes 1 million bpd which Saudi Arabia
voluntarily cut.
"It's almost as if they looked at the situation in India and
some concerns in Brazil and said these are risks but right now
the demand story still has a way to go," said Commonwealth Bank
commodities analyst Vivek Dhar.
The rapid spread of COVID-19 infections in India has stalled
oil price gains with fuel use and refinery output dropping in
the country, the world's third largest oil consumer. However the
market is banking on a strong recovery in the United States and
China to outweigh that impact.
"India is certainly a risk, but I don't think it's going to
derail the story we have right now on this rate of recovery,"
Dhar said.