Oil prices were down on Thursday as concerns about oversupply re-emerged after oil companies started to resume production in the US Gulf of Mexico following Hurricane Sally.
International benchmark Brent crude was trading at $41.69 per barrel at 0710 GMT for a 1.26% decrease after closing Wednesday at $42.22 a barrel.
American benchmark West Texas Intermediate (WTI) was at $39.59 a barrel at the same time for a 1.42% decrease after ending the previous session at $40.16 per barrel.
Oil prices declined after Hurricane Sally roared onshore, and energy firms started to return crews to offshore oil platforms in the Gulf of Mexico where more than half of the US oil refineries are located.
Lingering second wave coronavirus outbreak concerns continue to exert pressure on prices, signaling that economic recovery in the short term is not in sight and compelling investors to prepare for a decline in demand.
US commercial crude inventories fell by 4.4 million barrels to the lowest level since April compared to the expectations of a 1.3 million-barrel build. The record drop is seen as a sign of rebounding demand in the US, the world's largest oil consumer, and as a result, is limiting further oil price drops.
The Organization of Petroleum Exporting Countries (OPEC) and some non-OPEC countries are scheduled to meet on Thursday to review the oil market. However, the organization is not expected to suggest further cuts to oil output despite the recent price drop.
The number of COVID-19 cases worldwide is now close to 30 million, according to the latest data from Johns Hopkins University.
As the US leads the number of cases with over 6.6 million as of Thursday morning, India has over 5.1 million, and Brazil follows with more than 4.4 million cases.
By Firdevs Yuksel and Sibel Morrow