Oil rises on positive US economic data; Covid-19 concerns limit gains

Oil futures were up on Thursday, supported by a drop in US unemployment and a drawdown in crude inventories, but the spike in US coronavirus infections fanned concerns that economic activity will weaken in coming weeks.

New Covid-19 cases in the United States rose by nearly 50,000 on Wednesday, according to a Reuters tally, the biggest one-day spike since the start of the pandemic.

Numerous states are advising citizens to restrict movements and closing bars and restaurants again, which is expected to hamper further job growth.

Brent crude futures rose 69 cents, or 1.6 per cent, to trade at $42.72 a barrel by