Oil climbs after U.S. stockpile drop prompts demand fears

Oil prices climbed on Wednesday after U.S. crude inventories fell against analysts’ expectations, prompting a boost in the market amid the coronavirus resurgence.

Brent crude futures gained 0.3%, or 14 cents, at $43.36 per barrel. U.S. West Texas Intermediate crude futures rose 0.1%, or 2 cents, at $41.06 per barrel.

U.S. crude oil stockpiles fell by 6.8 million barrels to 531 million barrels last week, according to data from the American Petroleum Institute. This was contrary to analysts’ expectations of a 357,000-barrel increase. 

Investors are still worried that the rising coronavirus cases could offset fuel demand and cause an oversupply in the market.

Still, the U.S. Senate remain divided over the coronavirus aid package as Democrats and Republicans debated on the size of the fiscal stimulus.

Meanwhile, in Hong Kong, the government warned that the city is nearing a large-scale COVID-19 outbreak and urged people to stay indoors.