UPDATE 10-Oil prices climb as U.S. economic data lends support

* Weekly U.S. jobless claims fall to 1.480 million
* New wave of coronavirus cases may hurt demand recovery
* IMF prediction of deeper global recession also weighs

(Updates to settlement)
By Devika Krishna Kumar
NEW YORK, June 25 (Reuters) - Oil prices rose about 2% in a
volatile session on Thursday, buoyed by signs of a marginal
improvement in the U.S. economy and a tepid rise in fuel demand,
but price gains were limited by rising cases of COVID-19 in some
U.S. states.
Brent crude LCOc1 rose 74 cents, or 1.8%, to settle at
$41.05 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1
ended the session up 71 cents, or 1.9%, at $38.72.
Road traffic in some of the world's major cities in June had
returned to 2019 levels, data provided to Reuters by location
technology company TomTom showed. Oil prices fell early, then found support as data showed
fewer Americans filed for unemployment benefits last week and
orders for key capital goods rebounded in May.
Still, the decline in jobless claims was less than analysts
expected and other data supported expectations that
second-quarter GDP could shrink at as much as a 40% annualized
rate.
To kick-start the world economy devastated by coronavirus,
central banks have unleashed trillions of dollars in stimulus.

"Part of the rebound here is the idea that all the stimulus
measures that central banks and the world's governments are
pumping into the economy is going to have a positive impact on
economic activity and that it will be supportive to demand,"
said Gene McGillian, vice president of market research at
Tradition Energy in Stamford, Connecticut.
"The only roadblock is if the number of COVID-19 cases picks
up and we have to reimpose shelter in place measures but I don't
think we can conclude that it's in the cards yet."
New infections have surged in U.S. states including
Oklahoma, Texas and Florida. Australia posted its biggest daily
rise in two months.
Despite recent regional increases in U.S. infections,
"vehicle traffic continues to improve, international flights
re-gain ground, employees phase back to work and discretionary
activity picks up," said Michael Tran, managing director of
energy strategy at RBC Capital Markets in New York.
Still, investor worries about oil demand persisted a day
after the International Monetary Fund predicted a deeper global
recession than previously thought. A record crude supply cut by the Organization of the
Petroleum Exporting Countries and allies has kept the oil market
much stronger than in April, when Brent hit a 21-year low below
$16 a barrel and U.S. crude turned negative.
Investors are waiting to see if the producers, known as
OPEC+, extend their record cut beyond July.