U.S. Inventories Cap Oil Gains – 22 July, 2020

Oil prices were slightly higher but an unexpected rise in U.S. reserves capped gains. Brent crude rose 0.1% or 2 cents to $44.31 per barrel. U.S. West Texas Intermediate was up 0.1% or 6 cents to $41.96 per barrel. Japanese Economic data showed a drop in economic activity for the month of July and is continuing into the third quarter due to the ongoing spread of the coronavirus which also affected prices. U.S. inventories rose an additional 4.9 million in the third week of July, up by 100,000 to 1.1 million barrels per day. Many states are experiencing a massive increase in positive coronavirus cases, passing the 1,000 deaths from the virus milestone this week, its first time since June 10.