Oil prices fell on Wednesday for a second day to a one-week low: surprise in U.S. crude inventories and growing concerns about COVID-19 cases in India will reduce demand for fuel from the world’s third largest oil importer.
Brent futures fell $ 1.30, or 2.0%, to $ 65.27 a barrel at 13:54 EDT (1754 GMT), while June West Texas Intermediate (WTI) crude went falling $ 1.44, or 2.3%, to $ 61.23. The new first month of June of WTI fell by about 1.8% over the expiration of the May contract on Tuesday.
This puts the two benchmarks on track for their lowest closures since April 13th.
“Oil prices are falling today as … bearish developments have forced traders to ignore a partial but upward force majeure of Libya’s exports,” said Louise Dickson, an analyst at Rystad Energy’s oil markets.
He noted the creation of U.S. crude inventories and the continued increase in COVID-19 infections in India and other countries.
India, the world’s third-largest oil user, reported another record increase in the daily death toll from COVID-19 on Wednesday. Read more
U.S. crude deposits rose unexpectedly last week, the Energy Information Administration reported on Wednesday, confirming data from the American Petroleum Institute the day before. Read more,
Crude inventories (USOILC = ECI) rose 594,000 barrels a week through April 16 to 493 million barrels, compared to analysts’ expectations in a Reuters poll of a 3 million barrel drop.
However, inventories on the east coast of the United States fell to a record low, with 7.9 million barrels.
Increasing the possibility of a new oil supply, Iran and world powers have advanced negotiations to save a 2015 nuclear deal, which, if successful, could lift sanctions and bring more Iranian barrels back to market. Read more
The Organization of the Petroleum Exporting Countries and its allies, including Russia, a group known as OPEC +, are heading to a largely technical meeting next week, where major policy changes are unlikely to take place, according to Russian Deputy Prime Minister Alexander Novak and OPEC + sources. Read more
Novak said Wednesday that the group could confirm or modify production plans following its decision to ease production slowdown.
Meanwhile, in Libya, the country’s National Oil Corp (NOC) on Monday declared greater strength in Hariga port exports and said it could extend the measure to other facilities due to a budget dispute with the country’s central bank. country.
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