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Oil prices fall 1% as glut weighs

Published 10/05/2020, 23:15
Updated 10/05/2020, 23:18
© Reuters.
LCO
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CL
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USO
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NEW YORK, May 10 (Reuters) - Oil prices opened about 1%
lower on Sunday as a persistent glut continued to weigh on
prices and the coronavirus pandemic eroded global oil demand
even as some governments began to ease lockdowns.
Brent crude LCOc1 was down 29 cents, or 0.9%, at $30.68 a
barrel by 6:05 p.m. ET (2205 GMT) while U.S. oil CLc1 fell 26
cents, or 1.1%, to $24.48 a barrel.
Global oil demand has plummeted by about 30% as the
coronavirus pandemic curtailed movement across the world.
"Oil companies are dealing with a plethora of challenges due
to the sudden decline in demand," Haseeb Ahmed, oil and gas
analyst at GlobalData, said in a note.
"North America is battling a severe shortage of storage
capacity ... it may be only a matter of time, before the country
(United States) runs out of storage space."
However, both benchmarks have notched gains over the past
two weeks as countries have eased lockdowns and fuel demand has
rebounded modestly. Oil production worldwide is also declining
to reduce a swelling supply glut. In a televised address, British Prime Minister Boris Johnson
announced on Sunday a limited easing of restrictions, including
letting people exercise outside more often and encouraging some
people to return to work. Spain registered its lowest daily number of coronavirus
deaths on Sunday since mid-March and half of its population
prepared for an easing of one of Europe's strictest lockdowns,
though not yet the residents of cities such as Madrid and
Barcelona.

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