Oil Prices Are Rising But Fears Limit Gains

Oil prices rose on Thursday, but an unexpected increase in US crude stocks and the continued increase in new cases of Covid-19 discouraged the recovery in demand for fuel and limit gains.

US crude oil inventories and distillates rose unexpectedly while fuel demand fell last week, the US Energy Information Administration said on Wednesday. A sharp increase in cases of Covid-19 affected consumption.

Brent crude rose seven cents, or 0.2%, to $ 44.36 a barrel. West Texas Intermediate (WTI) increased eight cents, or 0.2%, to 41.98 dollars.

Prices have remained virtually unchanged since hitting a four-month high this week, driven by upbeat news about a vaccine.

The United States recorded more than a thousand deaths of Covid-19 on Tuesday, according to a Reuters count, the first time to exceed that threshold since June 10.

Crude inventories rose in the United States by 4.9 million barrels over the week ending July 17 to 536.6 million barrels, while Reuters poll showed a decline of 2.1 million barrels.