Oil Slips After U.S. Supplies Rise for First Time Since December

(Bloomberg) -- Oil edged lower with an increase in U.S. crude stockpiles for the first time since December pointing to the near-term obstacles still facing the market as it recovers from the pandemic.

Futures clung to losses after falling as much as 3.2% in New York on Friday. A U.S. government report showed domestic crude inventories increased by 4.35 million barrels last week. The data also showed an increase in distillate stockpiles, though gasoline supplies decreased.

Prices were trading lower earlier in the session amid signals that the recovery in oil demand is struggling to gain traction as governments toughen measures to curb the spread of Covid-19. Parts of Hong Kong are locking down and the U.K. prime minister is signaling restrictions may last for months. A stronger dollar is also reducing the appeal of commodities priced in the currency.

West Texas Intermediate crude futures for March delivery fell 63 cents to $52.50 a barrel at 11:05 a.m. in New York. Brent for March settlement lost 56 cents to $55.54 a barrel on the London-based ICE Futures Europe exchange.

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