Announced US stimulus plan helps a slight recovery of oil prices

Brent crude drops to $25 oil demand drops by about 10% of world’s consumption

Brent crude drops to $25 oil demand drops by about 10% of world’s consumption

Oil prices extended gains for a third session on Wednesday, rising alongside broader financial markets on hopes Washington will soon approve a massive aid package to stem the economic impact of the coronavirus pandemic.

International Brent Oil Futures rose 3.46% to $28.09 by 10:12 PM ET (02:12 AM GMT) and U.S. Crude Oil WTI Futures jumped 3.92% to $24.95.

Late Tuesday, the API reported that crude inventories fell by 1.2 million barrels in the week-ending March 20 to 451.4 million barrels.

The market was substantially off and analysts remained pessimistic that oil prices would stage an extended recovery amid the worsening coronavirus pandemic and the ongoing oil price war between Saudi Arabia and Russian Federation.

USA senators and Trump administration officials have reached an agreement on a $2 trillion stimulus bill that Congress was expected to pass on Wednesday, helping to boost markets.

Hong Kong bans all non-residents from entering the city
The strict new measures come as the number of confirmed cases in the city has nearly doubled in the past week. The city's airport - the eighth busiest in the world - would also bar all transit passengers, Lam added.

Still, demand for oil products, especially jet fuel, is falling worldwide as more governments announce nationwide lockdowns to curb the spread of the coronavirus, putting a lid on oil price gains.

The end of the deal would allow Saudi Arabia, Opec's de facto leader, to race Russian Federation to increase oil production in a bid to grab a greater share of the market.

The available SPR storage is less than 80 million barrels, according to Department of Energy data, and would amount to a flow of less than 0.5 million bpd when filled over a period of six months, compared with nearly 10 million barrels of projected oversupply over the second quarter, it added.

"This reminds me of the aftermath of the 1998 price crash and what it did to our productive capacity for the next decade", said John Kilduff, a partner at Again Capital Management in NY.

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