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Brent crude <LCOc1> rose 35 cents, or 0.8%, to $44.64 a barrel
by 0837 GMT, while U.S. West Texas Intermediate (WTI) crude
<CLc1> gained 32 cents, or 0.8%, to $42.22 a barrel.
The U.S. dollar index against a basket of currencies <.DXY> was
trading on Thursday near its lowest since early March. A weaker
dollar usually spurs buying of dollar-priced commodities as they
become cheaper for holders of other currencies.
"Genuine price support comes from the weak dollar, which helps
physical oil demand," Tamas Varga of oil brokerage PVM said.
But rising U.S. oil inventories put a break on further gains.
U.S. crude and distillate inventories rose unexpectedly and fuel
demand slipped in the most recent week, the U.S. Energy
Information Administration said on Wednesday, as a sharp rise in
coronavirus cases starts to hit U.S. consumption. [EIA/S]
The United States reported more than 1,000 deaths from COVID-19
on Tuesday, according to a Reuters tally, the first time since
June 10 the nation exceeded that figure in a day.
Barclays said on Thursday oil prices could see a correction in
the near-term if a recovery in fuel demand slowed further,
especially in the United States. The bank expects Brent to
average $41 in 2020 and WTI to average $37.
Adding to uncertainty in the market, U.S.-Chinese relations
deteriorated further as Washington gave Beijing 72 hours to
close its consulate in Houston amid accusations of spying.
(Additional reporting by Naveen Thukral and Koustav Samanta in
Singapore; Editing by Edmund Blair)
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