Crude oil prices rebounded after early weakness to pare most of its losses on Thursday, after data showed a larger than expected drop in U.S. crude inventories in the week ended October 9.
Concerns about energy demand outlook due to the surge in coronavirus cases in several parts across the globe and fresh lockdown measures limited oil’s rise. The continued impasse over coronavirus relief bill talks hurt as well.
West Texas Intermediate Crude oil futures for November ended down $0.08 or nearly 0.2% at $40.96 a barrel.
Brent crude futures were lower by $0.16 or 0.37% at $43.16 a little while ago.
Data released by the Energy Information Administration (EIA) this morning showed U.S. crude inventories dropped by 3.82 million barrels last week, nearly two times the expected decrease, after seeing a 500,000-barrel increae a week earlier.
The EIA data also showed crude stocks at the Cushing, Oklahoma, storage hub increased by 2.9 million barrels for the week.
The data showed gasoline stockpiles fell 1.6 million barrels last week, while distillate stockpiles were down 7.2 million barrels.
A report released by the American Petroleum Institute late Wednesday said U.S. crude supplies fell 5.4 million barrels last week.
The International Energy Agency said on Wednesday that a second wave of coronavirus infections could complicate efforts by producers to balance the market.
Due to spikes in coronavirus cases, several countries in Europe, including the U.K., France and Czech Republic, have imposed strict lockdown restrictions in many places.