Oil slides after U.S. crude inventories climb against expectations

23.09.2020 - Davydova Maria
Oil slides after U.S. crude inventories climb against expectations

Oil prices slid on Wednesday after an industry group reported a sudden rise in U.S. crude inventories, adding to demand fears that prompted a selloff earlier this week.

Brent crude fell 0.7%, or 30 cents, at $41.42 per barrel following a 28-cent gain on Tuesday. U.S. crude was down 0.9%, or 34 cents, at $39.46 per barrel. 

Both contracts slid over 4% on Monday, the most in two weeks.

Rising coronavirus infections in several countries including France and Spain, along with the possibility of renewed restrictions in Britain has reinforced worries about fuel demand, just as more supply may come onto the market from Libya.

In the United States, the COVID-19 death toll surpassed 200,000, the world’s highest. Crude oil inventories climbed by 691,000 barrels in the week ended Sept. 18, compared with analysts’ expectations for a 2.3-million-barrel drop. Gasoline stocks slid by almost 7.7 million barrels.

In Libya, the National Oil Company forecasts oil output to climb to over a quarter of a million bpd by next week. Conflict in the country led to a blockade of facilities, but analysts don’t expect Libya to hit the 1.2 million bpd of production it was pumping previously. 

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 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 PROMETHEUS 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 PROMETHEUS LTD." 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?