Oil prices slipped on Thursday, weighed down by concerns that surging coronavirus infections around the globe could jeopardize a recovery in fuel demand just as major oil producers are set to raise output.
FILE PHOTO: Pumpjacks are seen during sunset at the Daqing oil field in Heilongjiang province, China August 22, 2019. REUTERS/Stringer
“Oil should have done much better after the massive fall in U.S. crude inventories of over 10 million barrels, as well as the tailwinds from a generally much weaker U.S. dollar,” said Jeffrey Halley, senior market analyst at OANDA. U.S. gasoline and distillate stocks, which include diesel and heating oil, both rose against expectations for inventories to fall, highlighting the patchy nature of the recovery in fuel demand in the world’s biggest oil consumer.
Prices were anchored on Thursday by demand concerns with a rise in COVID-19 infections raising the prospect for lockdowns to be reimposed.
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