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UPDATE 9-Oil edges higher as recovery support countered by Asia virus surge

Published 04/23/2021, 01:09 PM
Updated 04/24/2021, 03:40 AM
© Reuters.
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* Euro zone recovery accelerated in April -PMI
* U.S. jobless claims drop to 13-month low
* COVID-19 cases rise in India and Japan
* U.S. rig count falls in first since March -Baker Hughes

(New throughout, updates prices, market activity and comments
to settlement)
By Laura Sanicola
NEW YORK, April 23 (Reuters) - Oil settled higher on Friday,
supported by bullish economic data from U.S. and Europe, though
a rise in coronavirus cases in India was still pressuring
prices.
Brent crude LCOc1 settled up 43 cents, 0.7%, to $65.83 a
barrel. U.S. West Texas Intermediate (WTI) U.S. crude CLc1
gained 63 cents, or 1.1%, to $66.11 a barrel.
For the week, both benchmark crudes fell about 1% due to the
resurgence of infections in India and Japan, the world's third
and fourth largest oil importers.
"This price consolidation follows a strong four-month price
advance that was largely predicated on U.S. vaccine progress
that forced some upward revisions in global demand ideas across
this year," said Jim Ritterbusch, president of Ritterbusch and
Associates in Galena, Illinois.
Euro zone Purchasing Managers' Index (PMI) data for April
showed a stronger-than-expected recovery and more European
states began easing coronavirus lockdowns. France said schools
would reopen on Monday.
U.S. data added to the upbeat outlook; the number of
Americans filing new claims for unemployment benefits fell to a
13-month low last week. "The PMIs across Europe were really off the charts,
especially following the strong unemployment report in the
U.S.," said John Kilduff, partner at Again Capital LLC in New
York.
U.S. refiner Valero VLO.N said demand for gasoline and
diesel were at 93% and 100% of pre-pandemic levels. International oil activity should ramp up through the end of
this year and beyond, Schlumberger NV SLB.N top boss Olivier
Le Peuch said. U.S. energy firms cut the number of oil rigs operating for
the first time since March, as rigs fell by one to 438 this
week, according to energy services firm Baker Hughes Co BKR.N .
Before this week, drillers added rigs for five weeks in a
row and has been up 80% since falling to a record low of 244 in
August 2020. RIG/U
Oil demand concerns weighed as India's coronavirus cases
surged to record highs. Several countries, including Australia, Britain, Canada, and
the United Arab Emirates have barred or cut flights from India.
Japan declared new lockdowns in Tokyo, Osaka and two other
prefectures on Friday.

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