TOKYO (Reuters) – Oil extended gains on Thursday as a pullback in U.S. stock records of crude and gasoline pulled demand expectations, while investors were also chewing on a potential Brexit trade deal.
U.S. West Texas Intermediate (WTI) crude times rose 18 cents, or 0.4%, to $ 48.30 a barrel before 0124 GMT, while Brent crude futures climbed 20 cents, or 0.4%, to $ 51.40 .
Both contracts gained more than 2% on Wednesday.
“Oil markets are quiet because all investors are in holiday mode,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.
“Lower US investments in fuel and fuel as well as signs of a Brexit deal that could cause the U.S. dollar to weaken were good news, but there are serious concerns about a new variant of the new benefits with coronavirus, ”he said.
U.S. crude deposits fell 562,000 barrels per week to Dec. 18 to 499.5 million barrels, the Energy Information Administration said Wednesday.
Gasoline stocks fell by a staggering 1.1 million barrels to 237.8 million barrels, the EIA said, while distillate stocks fell by 2.3 million barrels to 148.9 million barrels.
Oil prices pulled support from the news than Britain and the European Union were about to strike a narrow trade deal on Thursday, moving away from a chaotic border to a Brexit split.
The potential stimulus was sterling, which was up 0.13% against the dollar after closing up 0.9%. A softer dollar makes green goods more affordable for other currency holders.
However, investors are still jittery about recovering oil demand as a more contagious variant of the rapidly spreading coronavirus across Britain is urging countries to close their borders to the UK.
Americans were again warned not to travel for Christmas because the latest rise in cases was over hospitals.
Raising concerns about supply glut, U.S. energy companies this week added oil and natural gas crushers for the fifth week in a row.
The number of oil and gas rigs, an early sign of future output, rose 2 to 348 a week to Dec. 23, energy services firm Baker Hughes Co. said.
Reporting by Yuka Obayashi; Edited by Himani Sarkar