Oil eases as new lockdowns raise concern about fuel demand | Reuters

Oil eases as new lockdowns raise concern about fuel demand | Reuters:

Oil prices eased on Thursday as new restrictions to stem a surge in COVID-19 infections dimmed the outlook for economic growth and fuel demand.

Traders said prices pared earlier losses after the U.S. Energy Information Administration (EIA) reported an increase in U.S. petroleum demand last week that helped reduce crude stockpiles, while distillate inventories dropped by the most since 2003 as Hurricane Delta cut oil production and shut Gulf Coast refineries.

“The (EIA) report halted the (price) slide, which was threatening to turn into an avalanche earlier this morning,” said Robert Yawger, director of energy futures at Mizuho in New York.

Brent LCOc1 futures fell 16 cents, or 0.4%, to settle at $43.16 a barrel, while U.S. crude CLc1 fell 8 cents, or 0.2%, to settle at $40.96. Earlier, both benchmarks were down more than $1 a barrel.