Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

UPDATE 4-Oil heading for weekly drop as coronavirus demand concerns mount

Published 25/09/2020, 05:25
Updated 25/09/2020, 12:36

(Updates prices, adds detail)
By Noah Browning
LONDON, Sept 25 (Reuters) - Oil prices fell on Friday and
were set for a weekly decline due to mounting worries about the
impact on fuel demand of a widespread resurgence in coronavirus
infections, as well as some concern about the likely return of
exports from Libya.
Brent crude LCOc1 was down 30 cents at $41.64 a barrel by
1115 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1
fell 43 cents to $39.88.
Brent is heading for a drop of more than 3% this week with
U.S. crude on track for a decline of nearly 3%. Both benchmarks
are also heading for a monthly decline, which would be the first
for Brent in six months.
"This month has not been kind to the oil market," said
Stephen Brennock of oil broker PVM.
"Rising virus infections, renewed lockdowns, slowing
economic recovery and stalled U.S. stimulus talks have put the
brakes on the fragile revival in fuel demand."
In the United States, which has the highest death toll from
the coronavirus pandemic and is the world's biggest oil
consumer, unemployment claims unexpectedly rose last week
suggesting an economic recovery is flailing and pushing down
fuel demand. U.S. fuel demand remains in the doldrums as the pandemic
constrains travel. The four-week average of gasoline demand last
week was 9% below a year earlier, government data showed on
Wednesday. In other parts of the world, daily increases of coronavirus
infections are hitting records and new restrictions are being
put in place that will likely limit travel and fuel demand.
In India, throughput by crude oil refiners in August fell
26.4% from a year ago, the most in four months, as fuel demand
ebbed because surging coronavirus cases hindered industrial and
transport activity.
In Libya, Shell has provisionally booked a tanker to load a
crude cargo at Libya's Zueitina terminal on Oct. 3, potentially
the first since January at the recently reopened port.
However, analysts have questioned how quickly the country
could ramp up supply.
"Fundamentally, nothing has changed to the supply side of
the equation that is weighing on oil prices in the bigger
picture," said Jeffrey Halley, senior market analyst at OANDA.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
CHART: U.S. oil may edge up into $40.81-$41.49 range
Brent oil neutral in $41.60-$42.12 range India's crude processing, fuel demand https://tmsnrt.rs/3j0m2QH
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.