SINGAPORE- Oil prices ticked higher on Thursday, although gains were limited by a surprise increase in US crude oil reserves as the coronavirus pandemic hit fuel consumption.
US crude and distillate inventories rose unexpectedly and fuel demand slipped in the most recent week, the Energy Information Administration said on Wednesday, as a sharp rise in coronavirus cases has started to hit US consumption.
Brent crude added 2 cents, or 0.1 percent, to $44.31 a barrel while US West Texas Intermediate (WTI) crude gained 6 cents, or 0.1 percent, to $41.96 a barrel. Prices have been marking time since hitting a four-month high earlier in the week on hopeful news about a coronavirus vaccine.
“Normally inventories of fuel would be heavily drawn upon, but the surge in COVID-19 case numbers has stymied the recovery,” ANZ said, referring to usual demand during the peak US summer driving season.
Crude inventories rose by 4.9 million barrels in the week to July 17 to 536.6 million barrels, compared with expectations in a Reuters poll for a 2.1 million-barrel drop. Production rose to 11.1 million barrels per day, up by 100,000 barrels per day.
