2020.09.0310:44:00UTC+00Oil Falls On Demand Concerns

Oil prices fell sharply on Thursday after data released by Energy Information Administration (EIA) highlighted a fall in U.S. gasoline demand in the latest week and lag in fuel demand recovery from the Covid-19 pandemic.

Benchmark Brent crude fell 75 cents, or 1.7 percent, to $43.68 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 71 cents, or 1.7 percent, at $40.80.

The EIA report on Wednesday showed domestic crude oil and gasoline supplies declined further during the final week of August, but that was due to the impact of Hurricane Laura, which skewed the results.

The latest ADP report revealed that private payrolls in the U.S. rose at a slower than expected pace in August, raising fears that economic recovery in the country was lagging.

The euro zone's rebound from its deepest economic downturn on record faltered in August, surveys showed earlier today as some countries re-imposed restrictions to limit the spread of the coronavirus.

Germany's services PMI fell, but nevertheless remained relatively healthy. French business activity growth eased as new orders stagnated. The services PMIs for Italy and Spain dropped below the breakeven mark due to restrictions on logistics and travel.

Meanwhile, Eurozone retail sales fell unexpectedly in July on weak non-food products turnover, Eurostat data showed.