Oil futures rose on Thursday, erasing earlier losses, on signs U.S. gasoline demand is rising despite a big surprise build in crude inventories and worries that China’s new Hong Kong security law could result in trade sanctions.
Oil prices have rebounded in recent weeks on anticipation of improved demand after the coronavirus pandemic sapped worldwide consumption roughly 30%. Overall investment is dropping and U.S. production cuts are balancing out the supply glut, but demand still has not bounced back entirely.
On its second to last day as the front-month, Brent futures for July delivery rose 99 cents, or 2.8%, to $35.71 a barrel. West Texas Intermediate crude rose 90 cents, or 2.7%, to settle at $33.17 per barrel.