Rising Covid-19 cases reduce US summer fuel consumption
Oil prices lost more ground on Thursday, with the market weighed down by a surprise increase in US crude oil reserves as the coronavirus pandemic hits fuel consumption.
The US crude and distillate inventories rose unexpectedly and fuel demand slipped in the most recent week, the Energy Information Administration said on Wednesday, as a sharp rise in coronavirus cases has started to hit US consumption.
Brent crude fell 4 cents, or 0.1 percent, to $44.25 a barrel by 0026 GMT while US West Texas Intermediate (WTI) crude slid 6 cents, or 0.1 percent, to $41.84 a barrel.
“Normally inventories of fuel would be heavily drawn upon, but the surge in Covid-19 case numbers has stymied the recovery,” ANZ said, referring to usual demand during the peak US summer driving season.
