Oil holds near five-month high on U.S. output cuts, virus concern weighs - Reuters

Oil holds near five-month high on U.S. output cuts, virus concern weighs - Reuters:

Oil edged up towards $46 a barrel on Wednesday, close to its highest since March, lifted by U.S. producers shutting most of their offshore Gulf of Mexico output ahead of Hurricane Laura and a report showing a drop in U.S. crude inventories.

Renewed worries over the COVID-19 pandemic, which has squeezed demand and sent prices to record lows in April, limited gains after reports this week of patients being re-infected, raising concerns about future immunity.

Brent crude LCOc1 rose 8 cents, or 0.2%, to $45.94 a barrel by 1331 GMT, while U.S. West Texas Intermediate crude CLc1 added 26 cents, or 0.6%, to $43.61. Both benchmarks settled at a five-month high on Tuesday.

“Oil traders will be preoccupied with the hurricane today,” said Tamas Varga of broker PVM. “Once the danger passes, demand considerations will come into focus again.”