Oil’s Recovery Capped by Stubborn U.S. Crude Glut, Dour Demand
- WTI at four-month high, but rising supplies limiting rally
- Gasoline stocks shrink yet demand showing seasonal weakness
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Oil’s rally has hit a ceiling, with U.S. crude inventories holding near a record high and gasoline demand still at the weakest seasonal level in more than 20 years.
Futures in New York closed at a four-month high, but the U.S. benchmark crude has traded within a tight $2 range this month, struggling to hold above $41 a barrel. An Energy Information Administration report showing that domestic crude stockpiles rose by 5.65 million barrels last week is only adding to the malaise. While gasoline demand is improving -- particularly on the East Coast, where coronavirus cases are slowing -- seasonal consumption remains at a two-decade low.