Wednesday, Aug 05, 2020 | Last Update : 06:45 PM IST

133rd Day Of Lockdown

Maharashtra45795629935616142 Tamil Nadu2682852087844349 Andhra Pradesh176333956251604 Karnataka145830692722704 Delhi1391561252264033 Uttar Pradesh100310572711817 West Bengal80984568841785 Telangana6894649675563 Gujarat65704485612529 Bihar6203140760349 Assam4816233429115 Rajasthan4667932832732 Haryana3779631226448 Odisha3768124483258 Madhya Pradesh3508225414912 Kerala279561629988 Jammu and Kashmir2239614856417 Punjab1901512491462 Jharkhand140705199129 Chhatisgarh10109761369 Uttarakhand8008484795 Goa7075511460 Tripura5520367528 Puducherry4147253758 Manipur301818147 Himachal Pradesh2879171013 Nagaland24056594 Arunachal Pradesh179011053 Chandigarh120671520 Meghalaya9173305 Sikkim7832971 Mizoram5022820
  Business   Market  17 Jun 2020  Oil falls amid virus resurgence fears, rise in inventories

Oil falls amid virus resurgence fears, rise in inventories

REUTERS
Published : Jun 17, 2020, 9:41 am IST
Updated : Jun 17, 2020, 9:41 am IST

OPEC panel will meet on Thursday to further discuss ways to strengthen and review compliance to curb oil production and support prices

 Oil falls on rise in US crude stocks, potential second wave. (AFP Photo)
  Oil falls on rise in US crude stocks, potential second wave. (AFP Photo)

SEOUL: Oil prices retreated on Wednesday, weighed down by an increase in U.S. crude inventories and worries about a potential second wave of the coronavirus pandemic.

Brent crude futures were down 40 cents, or 1.0%, at $40.56 a barrel as of 0047 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 59 cents, or 1.5%, to $37.79 a barrel.

 

Both benchmarks rose over 3% in the previous session after the International Energy Agency (IEA) raised its 2020 oil demand forecast to 91.7 million barrels per day (bpd) and U.S. retail sales posted a record jump in May.

However, the rise in U.S. crude and fuel inventories, reported in post-settlement trade, stoked concerns over high supplies and put downward pressure on oil prices.

U.S. crude oil inventories rose by 3.9 million barrels in the week to June 12 to 543.2 million barrels, ahead of analysts’ expectations for a fall of 152,000 barrels, according to data from industry group the American Petroleum Institute.

Gasoline stocks rose by 4.3 million barrels and distillate fuel stockpiles, including diesel fuel and heating oil, rose by 919,000 barrels.

 

Official data from the U.S. Department of Energy’s Energy Information Administration is due later on Wednesday.

Worries over a possible second virus wave also weighed on prices, with the number of cases surpassing 8 million globally.

“It seems unavoidable there may be small spikes and isolated outbreaks throughout the world. It may take time for the oil market to desensitize, given the nascent recovery’s fragility,” said Stephen Innes, chief global market strategist at AxiCorp.

Meanwhile, an OPEC-led monitoring panel will meet on Thursday to further discuss ways to strengthen and review compliance with OPEC’s commitment to curb oil production and support prices.

 

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, agreed to curtail supplies by 9.7 million barrels per day (bpd), about 10% of pre-pandemic demand until end-July.

Tags: oil prices, crude oil, us crude, crude inventories, coronavirus pandemic