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CORRECTED-Oil prices toppled from rising streak as jump in COVID-19 cases stokes fuel demand fears

Published 08/05/2020, 09:50 AM
Updated 08/05/2020, 03:40 PM
© Reuters.
LCO
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CL
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(Corrects to read Tuesday, paragraph 2)
TOKYO, Aug 5 (Reuters) - Oil prices fell for the first time
in four days on Wednesday, pulling back from as much as
five-month highs as mounting coronavirus cases worldwide and in
the United States undercut market confidence in a pickup in fuel
demand.
Brent crude LCOc1 was down 16 cents, or 0.4%, at $44.27 a
barrel by 0117 GMT. It finished 0.6% higher on Tuesday - the
highest close since March 6.
West Texas Intermediate CLc1 oil was down 17 cents, or
0.4%, at $41.53 a barrel. The contract ended Tuesday trading
1.7% higher, its highest close since late July.
Coronavirus cases continue rising in the United States, and
deaths are at more than a 1,000 a day, while dozens of states
have had to pause or scale back plans to reopen their economies.
Still, talks between Democrats in Congress and the White
House on a new package of coronavirus relief started moving in
the right direction, although the two sides remain far apart.
U.S. factory data this week also showed an improvement in
orders, which some analysts saw as offering relief to concerns
about risks to any recovery. "Oil could be ready to test the upper boundaries of its
recently tight range," said Edward Moya, senior market analyst,
at OANDA.
In the near term, though, traders shrugged off data showing
a big fall in crude oil inventories in the U.S., normally enough
to spur a rally in prices.
Crude inventories were down by 8.6 million barrels in the
week to Aug. 1 to 520 million barrels, compared with analysts'
expectations for a drop of 3 million barrels. API/S
Official figures from the U.S. Department of Energy are due
out later on Wednesday.


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