Demand for petroleum products mounted early in October, cutting into U.S. inventories of crude and refined products, but a resurgence of the coronavirus pandemic across swaths of the Lower 48 and Europe threaten to thwart the trend and weigh down oil prices.

oil price consensus

Demand for fuel derived from oil was crushed earlier this year by the global lockdowns imposed to slow the spread of the virus. As countries gradually reopened economies, activity and travel gathered momentum and, in recent weeks, started to hasten and result in greater demand for oil, the U.S. Energy Information Administration (EIA) said in its latest Weekly Petroleum Status Report (WPSR).

EIA said for the week ending Oct. 9 demand increased 6% week/week – following a 5% jump the prior week – resulting in a 17 million...