Oil falls as virus fears weigh on demand recovery

30.07.2020 - Petr Mazaylo
Oil falls as virus fears weigh on demand recovery

Oil prices fell on Thursday as the rising global coronavirus cases weighed on fuel demand recovery just as OPEC+ producers are set to increase supply.

The Brent contract for October slid 0.05%, or 2 cents, at $44.07 per barrel, while the September delivery fell 7 cents to $43.68 per barrel. U.S. West Texas Intermediate crude futures lost 5 cents to $41.22 per barrel.

Both benchmark contracts climbed on Wednesday after the Energy Information Administration posted its steepest one-week drop in crude stocks since December. Meanwhile, U.S. gasoline and distillate stocks including diesel and heating oil both gained, contrary to analysts’ expectations.  

COVID-19 deaths in the United States hit 150,000 on Wednesday, while Brazil reported daily records of new infections and deaths. 

The possible hit to demand recovery came just as major producers from OPEC and its allies are set to raise output in August, increasing 1.5 million bpd to the global supply.

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?