Inventories fall Oil steady amid demand concerns

Oil futures were little changed on Thursday, supported by a fall in US unemployment and Wednesday’s drawdown in crude inventories, but the spike in US coronavirus infections fanned concerns that economic activity will weaken in coming weeks. New Covid-19 cases in the United States rose by nearly 50,000 on Wednesday, according to a Reuters’ tally, the biggest one-day spike since the start of the pandemic. Numerous states are advising citizens to restrict movements and closing bars and restaurants again, which is expected to hamper further job growth. Brent crude futures gained 10 cents to trade at $42.13 a barrel, after rising 1.8% in the previous session. US West Texas Intermediate (WTI) crude futures lost 18 cents to $39.64 a barrel after a 1.4% rise on Wednesday.

Published in The Express Tribune, July 3^rd, 2020.

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