Oil rises slightly as inventory draw outweighs demand worries
Oil prices were little changed on Wednesday as concerns lingered over soft U.S. fuel demand while global producers feared a second prolonged wave of the coronavirus pandemic was a major risk for the market recovery.
U.S. crude oil stockpiles fell 1.6 million barrels last week, while fuel demand was down 14% from the year-ago period over the last four weeks, Energy Information Administration data showed.
“The drop in gasoline demand week-over-week was a concern. That’s still showing weakness,” said Phil Flynn, a senior analyst at Price Futures Group in Chicago. “The only thing that is holding us back is demand,” he said.
Brent crude futures were down 13 cents at $45.33 a barrel, but still not far off a five-month high above $46 a barrel reached earlier in August.
West Texas Intermediate crude settled 4 cents higher at $42.93 per barrel.
Global oil demand should recover to pre-pandemic levels as soon as the fourth quarter, the Saudi Energy minister said, while urging compliance with a global deal to cut output.
Reference: CNBC
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