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Oil prices dip on demand worries as California reimposes restrictions

02 July 2020 07:13 (UTC +04:00)

Oil prices slipped in early trade on Thursday after California reimposed some coronavirus lockdown measures, stoking worries a resurgence in COVID-19 cases will stall a recovery in fuel demand, APA reports quoting Reuters.

U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 13 cents, or 0.3%, to $39.69 a barrel at 0024 GMT, trimming a 1.4% rise from Wednesday.

Brent crude LCOc1 futures fell 15 cents, or 0.3%, to $41.89 a barrel, after rising 1.8% in the previous session.

California sharply rolled back efforts to reopen its economy on Wednesday, banning indoor restaurant dining in much of the state, closing bars and beefing up enforcement of social distancing and other measures as COVID-19 infections surged.

Oil prices rose in the previous session after U.S. Energy Information Administration data showed U.S. crude inventories USOILC=ECI fell 7.2 million barrels from a record high last week, far more than analysts had expected, as refiners ramped up production and imports eased.

However, analysts noted the data also showed gasoline stockpiles rose due to a sharp increase in imports, against expectations for inventories to fall.