* India posts record daily infections and deaths
* U.S. crude stockpiles slump after export surge -EIA
(Updates with settlement prices)
By Jessica Resnick-Ault
NEW YORK, May 6 (Reuters) - Oil prices settled lower on
Thursday, reversing early gains under pressure from rising
COVID-19 infections in India and elsewhere although prices
retained some support from a report a day earlier that U.S.
crude inventories fell more sharply than expected.
Brent crude oil LCOc1 settled lower by 87 cents, or 1.3%,
at $68.09 a barrel. West Texas Intermediate (WTI) U.S. crude
CLc1 futures dropped 92 cents, or 1.4%, to $64.71.
"When Saudi Arabia cut their crude selling price, it was a
stark reminder that there are still pockets of danger of COVID
that could impact demand," said Phil Flynn, a senior analyst at
Price Futures Group in Chicago.
On Wednesday, both benchmarks hit their highest since
mid-March before retreating to close little changed after two
days of gains.
India posted record daily COVID-19 infections and deaths,
with the virus spreading from cities to villages across the
world's second-most populous nation, dashing hopes that its
deadly second wave was about to peak.
"The record numbers of new infections in India have been
making the headlines and fueling fears that demand may recover
more slowly," Commerzbank said.
Yet easing restrictions in Europe and falling U.S. crude
inventories supported prices.
"As the rollout of vaccines continues and a pent-up summer
driving season continues to manifest, this trend should
accelerate, keeping demand for motor fuels robust and boosting
market confidence in the recovery story," Citi analysts said in
a note.
U.S. crude stocks fell more than expected last week as
refining output rose and exports surged, the Energy Information
Administration said on Wednesday. S/EIA
U.S. crude inventories fell by 8 million barrels in the most
recent week, compared with expectations in a Reuters poll for a
drop of 2.3 million barrels, the Energy Information
Administration said on Wednesday.
Commerzbank analysts cited "a massive fall in net crude oil
imports to around 1.3 million barrels per day, their lowest
level in at least 40 years." EIA/S
They added that gasoline demand in the world's largest oil
importer has proved disappointing, with stocks rising slightly
last week.