Petroleum prices edged up to around $42.00 U.S. a barrel on Wednesday, supported by rising investor risk appetite and a report that U.S. fuel inventories fell, although rising crude supply and concern of stalling demand capped gains.
Brent crude was up 29 cents, or 0.7%, at $42.02, reversing an earlier drop. U.S. West Texas Intermediate crude was up 24 cents, or 0.6%, at $39.92. Both contracts fell more than 4% on Monday, though they rose on Tuesday.
U.S. inventory numbers from the Energy Information Administration showed that inventories decreased by 1.6 million barrels last week, while analysts had expected a draw of 3.3 million barrels.
Surging COVID-19 infections in countries including India, France and Spain and new restrictions in Britain have renewed worries about demand, just as more supply may come from Libya. In the United States, the death toll has passed 200,000.
Oil collapsed as the pandemic decimated demand, with Brent falling below $16, a 21-year low, in April. A record output cut by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, has helped revive prices.
