Oil falls as demand growth concerns outweigh U.S. stock drawdown | Reuters

Oil falls as demand growth concerns outweigh U.S. stock drawdown | Reuters:

Oil prices dropped on Thursday, weighed down by concerns that U.S. economic recovery is slowing as the coronavirus outbreak lingers, while a renewed wave of COVID-19 cases in Europe have led to reimposed travel restrictions in several countries.

The jitters over demand and economic outlook due to the coronavirus resurgence have prompted a rally in the dollar as investors turned to safer assets, adding pressure to oil prices. A stronger dollar makes oil, priced in U.S. dollars, less attractive to global buyers.

U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 37 cents, or 0.9%, to $39.56 a barrel at 0650 GMT, while Brent crude LCOc1 futures dropped 34 cents, or 0.8%, to $41.43 a barrel.

Both benchmarks climbed slightly on Wednesday after government data showed U.S. crude and fuel stockpiles dropped last week. Gasoline inventories fell more than expected, sliding by 4 million barrels, and distillate stockpiles posted a surprise drawdown of 3.4 million barrels.