Oil Prices Reverse Some Losses But Demand Concerns Persist

• Oil futures clawed back some of the losses they sustained in the previous session, but a rebound in COVID-19 cases in some countries undermined hopes for a steady recovery in global demand.
• Brent crude LCOc1 was up 20 cents, or 0.5%, at $39.98 a barrel after dropping more than 5% on Tuesday to fall below $40 a barrel for the first time since June. U.S. crude CLc1 was up 42 cents, or 1.1%, at $37.18 a barrel, having fallen nearly 8% in the previous session.
• “Short-term oil market fundamentals look soft: the demand recovery is fragile, inventories and spare capacity are high, and refining margins are low,” Morgan Stanley said.
• Yet, the bank raised its Brent price forecast slightly higher to $50 a barrel for the second half of 2021 with the dollar weakening and rising inflation expectations, it said.

(Source: Reuters)