Oil Prices at Highest Level in 5 Months

Oil prices rose on Wednesday to highest levels since early March after data showed a significant decline in US crude oil stockpiles, but fears of the second wave of Covid-19 capped the gains

Brent crude rose 1.03 dollars, or 2.3%, to 45.46 dollars a barrel. WTI also rose $ 1.03, or 2.5% to $ 42.73 a barrel.

According to data from the American Petroleum Institute (API), crude inventories fell 8.6 million barrels in the week ending August 1 to 520 million barrels, compared to analysts’ expectations for a decrease of three million barrels.

Official figures from the US Energy Information Administration (EIA) are due for release later Wednesday.

Global deaths due to Covid-19 exceeded 700,000 on Wednesday, according to a Reuters count, as the United States, Brazil, India and Mexico led the rise in the number of deaths.

The sentiment was supported by signs that talks between Democrats in Congress and the White House over a new package of financial support due to the Coronavirus have begun to move in the right direction even though the two parties are still in a state of disagreement.