Oil prices slip as growing stockpiles signal bumpy fuel demand recovery

MELBOURNE (Reuters) – Oil futures fell in early trade on Thursday, paring overnight gains, on worries about fuel demand after data showed U.S. crude stockpiles rose last week, rather than dropping as expected, and COVID-19 cases continued to rise around the world.

U.S. West Texas Intermediate (WTI) crude futures fell 20 cents, or 0.5%, to $37.85 a barrel at 0056 GMT, after climbing 3.5% on Wednesday.

Brent crude futures dropped 14 cents, or 0.3% to $40.65 a barrel, after rising 2.5% on Wednesday.

As coronavirus case surged in several U.S. states, the country’s crude stockpiles rose by 3 million barrels in the week to Sept. 4, data from the American Petroleum Institute showed on Wednesday. That compared with analysts’ forecasts of a draw of 1.4 million barrels.