Oil rises on signs of economic recovery, but new Covid-19 infections loom
Oil prices rose on Wednesday on a string of positive manufacturing data and a drawdown in U.S. crude inventories, both indicating an economic recovery, however, fears of a surging coronavirus infections capped the gains.
Brent crude was up 13 cents, or 0.3%, at $41.40 a barrel at 1236 GMT, and U.S. crude was up 14 cents, or 0.4%, at $39.41 a barrel. Both contracts rose $1 earlier in the session.
U.S. crude and gasoline stocks fell more than expected last week, while distillate inventories rose, data released by the American Petroleum Institute (API) late on Tuesday showed.
“The market’s main concern is demand and how Covid-19 affects it, so any hint that demand is recovering is welcomed with a price boost,” said Rystad Energy analyst Louise Dickson.
