Oil clung to losses with concerns over the economic recovery casting a cloud over the return to normal demand. WTI crude fell as much as 1.6% even as US jobless claims unexpectedly rose for a second straight week, highlighting the choppy road ahead even in countries that have been a bright spot for the demand rebound.

US benchmark crude futures have been stuck in a narrow band around $60 in recent weeks. While signs of demand picking up in places like the US has buoyed sentiment, fresh Covid outbreaks and renewed lockdowns have acted as a counterweight.

At the same time, market volatility has come off multi-month highs, with WTI futures trading in a less than $5-a-barrel range.

“The tug-of-war between short-term gloom and medium-term prosperity continues,” said Tamas Varga, an analyst at brokerage PVM Oil Associates.