Oil falls as prolonged pandemic poses demand risks

20.08.2020 - Petr Mazaylo
Oil falls as prolonged pandemic poses demand risks

Oil prices dropped on Thursday as major producers warned of fuel demand risks if the coronavirus pandemic prolonged, while U.S. crude stocks fell less than expected. 

Brent crude fell 0.8%, or 36 cents, at $45.01 per barrel. U.S. oil slid 0.9%, or 38 cents, at $42.55 per barrel.

U.S. crude inventories fell on its fourth consecutive week despite the increase in net imports. However, the 1.6 million-barrel drop for the week ended Aug. 14 was less than analysts’ expectations for a 2.7 million-barrel decline.

Fuel demand fell 14% year-on-year over the last four weeks, according to the Energy Information Administration.

Saudi Energy Minister Prince Abdulaziz bin Salman said that global oil demand should go back to pre-pandemic levels in the fourth quarter, but also urged the country’s OPEC+ partners to comply with the output cuts. 

Still, a draft OPEC+ statement said that a prolonged second wave of the coronavirus pandemic posed major risks for fuel demand recovery.

OPEC on its own has produced 30 million bpd of oil in the past decades, but these figures simmered down to 20 million to 22 million bpd during the pandemic. 

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or Market Solutions limited." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?