Oil drops for second day as India’s COVID-19 surge to hit fuel demand

Oil prices dropped for a second day on Wednesday on worries that rising COVID-19 infections in India will lower fuel demand in the world’s third biggest oil importer.

Brent crude futures for June lost 0.8%, or 52 cents, at $66.05 per barrel, following a 48-cent decline on Tuesday. U.S. West Texas Intermediate crude futures for June delivery dropped 0.9%, or 56 cents, at $62.11 per barrel. The May contract expired on Tuesday last traded at $62.44.

Data showed U.S. crude oil and distillate stocks climbed in the week ended April 16, contrary to analysts’ forecasts for a decline.

Crude stocks soared by 436,000 barrels, compared with an expected decline of 3 million bbl. 

Distillate stocks, including diesel, heating oil, and jet fuel, climbed by 655,000 barrels, compared with forecasts for a 1-million barrel drawdown. 

Experts say that despite a surge in COVID-19 cases in India and Japan, signs remain positive for a fuel demand recovery in the United States and Europe.