Gasoline inventories in the US grew by 1.9 million barrels in the week ending 16 October, according to EIA. Credit: John R Perry from Pixabay.

Oil prices fell following an increase in US gasoline stocks and a surge in coronavirus (Covid-19) cases in North America and Europe, which has dimmed the hopes of a recovery in fuel demand.

US West Texas Intermediate (WTI) crude futures dropped by $0.27 to $39.76 a barrel at 0127 GMT, while Brent crude futures fell $0.21 to reach $41.52 a barrel, reported Reuters.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Gasoline inventories in the US grew by 1.9 million barrels in the week ending 16 October, according to the Energy Information Administration (EIA) as against expectations of a drop by 1.8 million barrels.

National Australia Bank head of community research Lachlan Shaw said: “The latest EIA report showed an unexpected increase in gasoline inventories, which came at the same time as reduced gasoline output because of refinery outages due to Hurricane Delta. So the implication is gasoline demand is pretty soft.”

New Covid-19 infections are hitting records daily in several US states and in Europe, leading to new lockdowns. Furthermore, China has restricted overseas travel to control the spread of the disease. All these have increased the concern over recovery in fuel demand.

ANZ Research was quoted as stating: “The resurgence in coronavirus cases is seeing the US motorist increasingly putting the brakes on. This makes the negotiations on a US stimulus package even more important.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

However, hopes of US lawmakers coming to a deal on an economic stimulus package were affected after President Donald Trump alleged that Democrats were not supporting the deal.