Oil eases on demand risks, U.S. stockpile data

TOKYO, Aug 20 (Reuters) - Oil prices fell on Thursday as
major producers warned of a risk to the recovery in demand if
the coronavirus crisis is prolonged, while U.S. crude
inventories dropped less than expected.
Brent crude LCOc1 was down 28 cents, or 0.6%, at $45.09 by
0049 GMT after slipping 0.2% in the previous session.
U.S. oil CLc1 was down 31 cents, or 0.7%, at $42.62 a
barrl, after inching higher on Wednesday.
Stockpiles of crude in the United States fell last week for
a fourth straight week, even as net imports rose. However, the
1.6 million barrel decline was less than a Reuters poll showing
expectations for a 2.7 million barrel fall.
Still, stockpiles are expected to continue declining,
according to analysts.
"We expect that total crude stocks will continue to head
towards their five-year average in the weeks ahead as U.S.
production remains subdued," Capital Economics said in a note.
Fuel demand was down 14% from the year-earlier period over
the last four weeks, Energy Information Administration data
showed. EIA/S
Global oil demand should recover to pre-pandemic levels as
soon as the fourth quarter, the Saudi Energy minister said on
Wednesday, while urging partners to comply with a deal to cut
output.
He was speaking at a virtual meeting of the Organization of
the Petroleum Exporting Countries (OPEC) and allies such as
Russia - a grouping known as OPEC+. The meeting was reviewing
compliance with production cuts and left output reductions
unchanged.
A draft OPEC+ statement, seen by Reuters, said a second
extended wave of the pandemic posed a major risk for the oil
market recovery.
The group pressed members such as Nigeria and Iraq to do
more to meet their quotas after they exceeded them between May
and July.
OPEC alone in the past decades generally produced well over
30 million barrels per day (bpd) of oil but after this year's
cuts its output stood at 20-22 million bpd.