Thursday brought some respite for people after the oil prices trended lower following the US government’s showing the data of fall in inventories. It endorsed the view of oil prices getting a surge in their demand amid the Covid-19 pandemic. However, it seized profits from previous sessions.
In the initial session, Brent crude slipped to $45.35, down by 8cents a barrel. Notably, it had gained two per cent in the last session. On the other hand, West Texas Intermediate witnessed a downfall and stood at $42.61 a barrel, a loss of six cents. It had garnered 2.6% jump on Wednesday.
Interestingly, previous week, the fuel demand in the United States augmented to 19.37 million barrels. It was at its peak since March, said the data of EIA (Energy Information Administration). In the meantime, the output of cruder was reduced to 10.7m bpd from 11m bpd.
As per analysts, the mounting incertitude over the deadlock in Washington due to the coronavirus stimulus package is also pressurising the oil prices.