Oil prices held steady on Thursday as a new wave of coronavirus cases in Europe led several countries to reimpose travel restrictions, offsetting a bullish drop in U.S. crude and fuel inventories.
On Wednesday, prices climbed slightly after government data showed US oil inventories fell last week. Crude stocks declined by 1.6 million barrels, petrol by 4 million barrels, and distillate stockpiles posted a surprise drawdown of 3.4 million barrels. "Prices remain vulnerable despite the fact that they have settled as the week has progressed," said Craig Erlam, senior analysts at OANDA, noting"The risks to the outlook remain to the downside due to the rising Covid numbers across Europe."
Prices were also capped by data showing the number of Americans filing new claims for unemployment benefits unexpectedly increased last week, supporting views the economic recovery from the Covid-19 pandemic was running out of steam amid diminishing government funding.