Oil futures edge higher, India sets new COVID-19 case record

London (Quantum Commodity Intelligence) – Crude oil futures moved cautiously higher Thursday as investors continued to digest Wednesday's US Energy Information Administration data, which revealed a sharp loss drop in crude stocks but a build in gasoline.

Brent futures for front-month July were trading at $69.15/barrel (0645 GMT), compared to Wednesday's settle of $68.96/b, an increase of 0.28% on the day.

At the same time June WTI was trading $65.75/b, up 0.2% from Wednesday's settle of $65.63/b.

Sentiment has been generally positive this week and oil futures have rallied by around 3.5% since last Friday. The rollout of the US vaccine program has led to more US states announcing an easing of restrictions, while an easing of lockdown restrictions in Europe is also expected to boost travel.  

"As the roll-out of vaccines continues and a pent-up summer driving season continues to manifest, this trend should accelerate, keeping demand for motor fuels robust and boosting market confidence in the recovery story," said Citi Group in a report.

On the downside, India reported a record 412,000 new COVID-19 cases Thursday, which is expected to significantly dampen demand, ,even beyond May.

The EIA reported Wednesday a crude oil stocks draw of 8 million barrels, but a 700,000 build in gasoline stocks.