Oil prices flat; US crude stock draw supports but demand hopes dim

LONDON (Reuters) – Oil prices traded flat on Wednesday, supported by a draw in U.S. crude inventories and Britain’s approval of a second coronavirus vaccine but pressured by swelling year-over-year supply and the view that a federal aid package would be slimmer than hoped.

Brent crude futures gained 9 cents to $51.18 a barrel 11:44 EDT (1544 GMT), off the session high of $51.56 and well lower than the $66 price that started the year.

U.S. West Texas Intermediate (WTI) crude fell 4 cents to trade at $47.96, substantially down from about $62 at the start of 2020.

Both contracts slipped early the session as a bigger fiscal aid package in the United States looked increasingly unlikely, dampening hopes for a swifter recovery of oil demand that has been hammered by the COVID-19 pandemic.