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LONDON – Oil prices were steady on Wednesday, as rising U.S. crude inventories and an increase in U.S. coronavirus infections put the brakes on a recent recovery sparked by easing lockdowns.Brent crude futures rose 9 cents to $43.17 a barrel by 1340 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 8 cents at $40.70 a barrel.
Both benchmarks are set for a fourth session of daily percentage changes of less 1% in either direction, shrugging off news that OPEC member Libya was adding to global supplies by reopening its Es Sider oil terminal for exports.
The latest surge in U.S. coronavirus cases, taking the U.S. total above 3 million, has reduced hopes for a swift recovery in oil demand which has been hammered by the global lockdowns to prevent the virus spreading.
U.S. crude oil inventories rose last week, although gasoline and distillate inventories fell more than expected, data from industry group the American Petroleum Institute showed. “The search continues for a catalyst to break oil out of its range,” PVM analysts said, adding prices were holding steady “even as sentiment is sullied by renewed U.S. glut fears.”
The U.S. Energy Information Administration (EIA) said on Tuesday that U.S. crude oil production is expected to fall by 600,000 barrels per day (bpd) in 2020, a smaller decline than the 670,000 bpd it forecast previously.
Key ministers in OPEC+, which includes OPEC, Russia and other producers, were due to hold talks next week about their deal on record output cuts that will run to the end of July and then start tapering. In addition to Libya, Abu Dhabi National Oil Co (ADNOC) plans to boost oil exports in August, suggesting OPEC+ countries are preparing to ease output cuts, sources told Reuters.