Oil prices edge lower as US fuel demand remains weak; worsening US-China tension weigh on financial markets

Oil prices edged lower on Friday after US inventory data showed lacklustre fuel demand in the world’s largest oil consumer

Reuters May 29, 2020 08:03:37 IST
Oil prices edge lower as US fuel demand remains weak; worsening US-China tension weigh on financial markets

Singapore: Oil prices edged lower on Friday after US inventory data showed lacklustre fuel demand in the world’s largest oil consumer while worsening US-China tensions weighed on global financial markets.

Brent crude LCOc1 slipped 36 cents, or 1 percent, to $34.93 a barrel by 0106 GMT and US West Texas Intermediate crude CLc1 was at $33.20 a barrel, down 51 cents, or 1.5 percent. Still, both contracts are set for a fifth weekly gain, helped by production cuts and optimism about demand recovery in other countries.

Thursday’s data from the Energy Information Administration showed that US crude oil and distillate inventories rose sharply last week. Fuel demand remained slack even as various states lifted travel restrictions they had imposed to curb the coronavirus pandemic, analysts said.

“Memorial Day weekend did not bring US motorists out in droves like many market bulls were hoping,” RBC Capital Markets analyst Christopher Louney said in a note.

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