Oil prices gain on sharp US crude inventory drop

Oil prices edged up after a steep drop in US crude inventories, but another record day for COVID-19 cases worldwide kept gains in check.

Brent crude futures LCOc1 gained 35 cents to $43.57 a barrel by 10:57 a.m. EDT (1457 GMT). U.S. West Texas Intermediate crude futures CLc1 were up 18 cents to $41.22.

U.S. crude oil inventories fell by 10.6 million barrels last week to 526 million barrels, the Energy Information Administration said, in their largest drawdown since December. Net US crude imports fell 1 million barrels per day to 1.9 million bpd, the EIA said.

The drawdown was likely a result of supply cuts by the Organization of the Petroleum Exporting Countries and its allies, which were agreed-upon in April, finally being realized in fewer shipments.

A record number of new coronavirus infections were reported globally, while in the United States, deaths from the novel coronavirus were approaching 150,000, the highest level in the world and rising by 10,000 in 11 days, according to a Reuters tally.

Six US states reported one-day records for coronavirus deaths and cases in Texas passed the 400,000 mark. Attempts to provide relief amid the outbreak were in disarray after Republicans in the United States  disagreed over their own plan for providing $1 trillion in new coronavirus aid.