Oil falls as virus fears weigh on demand recovery

in #oilprices4 years ago

Oil prices fell on Thursday as the rising global coronavirus cases weighed on fuel demand recovery just as OPEC+ producers are set to increase supply.

The Brent contract for October slid 0.05%, or 2 cents, at $44.07 per barrel, while the September delivery fell 7 cents to $43.68 per barrel. U.S. West Texas Intermediate crude futures lost 5 cents to $41.22 per barrel.

Both benchmark contracts climbed on Wednesday after the Energy Information Administration posted its steepest one-week drop in crude stocks since December. Meanwhile, U.S. gasoline and distillate stocks including diesel and heating oil both gained, contrary to analysts  expectations.  

COVID-19 deaths in the United States hit 150,000 on Wednesday, while Brazil reported daily records of new infections and deaths. 

The possible hit to demand recovery came just as major producers from OPEC and its allies are set to raise output in August, increasing 1.5 million bpd to the global supply.

https://www.umarkets.com/en/news/oil-falls-as-virus-fears-weigh-on-demand-recovery