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Oil posts weekly decline as demand fears dent sentiment

Oil prices fell on Friday, weighed down by a build in U.S. crude inventories and worries that new pandemic restrictions in China will curb fuel demand in the world’s biggest oil importer.

Brent crude futures declined 60 cents, or 1.1%, to $55.50 a barrel.

U.S. West Texas Intermediate (WTI) crude futures fell settled 86 cents, or 1.6%, lower at $52.27 per barrel.

Overall U.S. crude inventories surprisingly rose by 4.4 million barrels in the most recent week, versus expectations for a draw of 1.2 million barrels.

 

Recovering fuel demand in China underpinned market gains late last year while the United States and Europe lagged, but that source of support is fading as a fresh wave of COVID-19 cases has sparked new restrictions.

Travel on U.S. roads fell 11% in November, a steeper decline over October road use as coronavirus cases increased, the U.S. Transportation Department said Friday.

U.S. crude inventory data showed signs of strength in domestic product demand.