Oil was anchored below $41 a barrel with an industry report signaling a surprise gain in U.S. crude stockpiles, while concerns linger about the threat to demand from rising coronavirus infections.

The American Petroleum Institute reported inventories rose by 2.05 million barrels last week, with Cushing supplies expanding for the first time since early May, according to people familiar with the data. Official figures are due Wednesday. Meanwhile, the virus set records across the U.S., with Texas’s daily cases, Arizona’s deaths and California’s hospitalizations hitting new highs.

West Texas Intermediate for August delivery dropped 0.5% to $40.43 a barrel as of 7:53 a.m. London time on the New York Mercantile Exchange after slipping 1 cent to settle at $40.62 on Tuesday. Brent for September settlement declined 0.4% to $42.91 on the ICE Futures Europe exchange after closing 2 cents lower in the previous session.

Source : Bloomberg