Oil Prices Fall As Virus Cases Explode - Uju Ayalogu's Blog for News, Reviews, Articles and More

Breaking News

Post Top Ad

Monday, 3 August 2020

Oil Prices Fall As Virus Cases Explode

Oil Prices Fall As Virus Cases Explode

Oil prices moved southwards on Monday on fears about the economic fallout from rising COVID-19 cases around the globe and on oversupply worries by OPEC and its allies.

Brent crude slid 40 cents, or 0.9%, to $43.12 a barrel by 0845 GMT, and U.S. West Texas Intermediate (WTI) crude was down 46 cents, or 1.1%, at $39.81.

In the last month, Brent has been trading in a range between $41 and almost $45.

“Oil continues to trade in an incredibly rangebound manner,” said Warren Patterson, ING’s head of commodities strategy.

READ ALSO:   $3.313bn Chinese Loans: Nigeria Pays $461m, Still Owes $3.12bn

“Speculators appear to be getting more nervous about the demand recovery, with the path much more gradual than market expectations coming into the second half of the year,” he added.

Coronavirus cases continued to surge in the United States and stood at almost 18 million globally. More countries imposed new restrictions or extended the current ones to control the pandemic.

Amid slow recovery of fuel demand due to the resurgence of the virus, investors are also worried about oversupply, as the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, will ease oil supply curbs from August.

“Concerns appear to be developing that a rise in OPEC+ production will coincide with uneven recovery in oil demand due to localised setbacks following secondary waves of COVID outbreaks,” said Harry Tchilinguirian, head of commodity research at BNP Paribas.

OPEC+ members have been cutting output since May by 9.7 million barrels per day (bpd).

From August, cuts will officially taper to 7.7 million bpd until December.

However, oil prices found some support after a survey showed that manufacturing activity across the euro zone expanded for the first time since early 2019 last month.

A Reuters poll on Friday indicated that oil is set for a slow crawl upwards this year as the gradual easing of coronavirus-led restrictions buoys demand, although a second COVID-19 wave could slow the pace of a recovery.

READ ALSO:   BREAKING!! Shoprite To Stop Operation In Nigeria

Are you an artiste? Do you want your music to go viral and reach a large number of audience? Promote your music and Submit your story on Ujuayalogusblog.com by clicking here. For Advert Inquiries Tel/+44(0)7590363984

For More:   Subscribe to Ujuayalogusblog.com

Subscribe to Our Posts via Email

Share This

No comments:

Post a comment

Listen to This Beautiful New Talent - Winter Wolf - Singing "What a Waste"

Post Bottom Ad