Oil Prices Inch Higher On Signs Of Growing Fuel Demand
Oil prices rose on Friday amid signs that fuel consumption is picking up pace due to resumption of economic activity.
However, rising number of new coronavirus cases in the United States and China as well as the prospect of increased U.S. crude production kept overall gains in check.
Benchmark Brent crude rose 0.9 percent to $41.42 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were up 0.8 percent at $39.02.
Fuel demand is accelerating, with gasoline demand rising week over week, as coronavirus lockdowns ease around the world.
Road traffic in some of the world’s major cities in June had returned to 2019 levels, data provided to Reuters by location technology company TomTom showed.
On the flip side, there are fears a surge in Covid-19 infections in some U.S. states such as Florida and Texas could stall the demand recovery.
European Central Bank President Christine Lagarde said the worst of the coronavirus crisis may be over for the world, but the recovery will be restrained and incomplete.