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Oil prices idle as coronavirus spike fears offset signs of gasoline recovery

Published 07/09/2020, 08:53 AM
Updated 07/09/2020, 09:00 AM
© Reuters.
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By Sonali Paul
MELBOURNE, July 9 (Reuters) - Oil prices barely moved in
early trade on Thursday as positive momentum from signs of a
recovery in U.S. gasoline demand was tempered by concerns about
renewed lockdowns with COVID-19 infections surging in the United
States.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were
unchanged at $40.90 a barrel at 0035 GMT, after rising 0.7% on
Wednesday.
Brent crude LCOc1 futures inched up 3 cents to $43.32,
after gaining 0.5% on Wednesday.
"The market's struggling to get strong conviction to the
upside at the current point in time," said Lachlan Shaw, head of
commodity research at National Australia Bank. "There's mixed
evidence on demand."
Oil prices rose on Wednesday as data from the U.S. Energy
Information Administration showed U.S. gasoline stockpiles
dropped by 4.8 million barrels last week, much more than
analysts had expected, as demand climbed to 8.8 million barrels
per day, the highest since March 20. EIA/S
However gains were tempered as a spike in COVID-19 cases
across several U.S. states raised the prospect of renewed
lockdowns holding back the fuel demand recovery.
That has kept the benchmark crude contracts in tight ranges
this week, although holding above $40.
Gasoline demand was falling in areas where lockdowns were
being reinstated in the United States, while U.S. demand on the
east coast, where coronavirus infections were under control, was
recovering well, Shaw said.
The United States reported more than 58,000 new COVID-19
cases on Wednesday, the biggest increase ever reported by a
country in a single day, with infections climbing in 42 out of
50 states, according to a Reuters tally.

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