Oil prices slide amid coronavirus concerns

OPEC raises 2020 demand forecast over China's recovery

OPEC raises 2020 demand forecast over China's recovery

"With the U.S. no longer pursuing a new fiscal stimulus plan which has any chance to be ready before the election, the second wave of COVID-19 is once again reducing economic activity and oil consumption projections".

Pandemic cases have surged in the US Midwest and beyond, with new infections and hospitalisations rising to record levels in an ominous sign of a nationwide resurgence as temperatures get colder. "We keep getting these dueling inputs where we get some hopefulness about things picking up and then get knocked back down".

For the week, front-month contract for WTI futures rose 0.7 percent, while Brent climbed 0.2 percent.

Crude futures in NY have clung close to the $40-a-barrel mark since September amid uncertainty around a demand recovery as the virus rages.

Brent crude for December delivery on Friday fell 0.53 percent to US$42.93 a barrel, up 0.2 percent for the week. In September, the panel had not seen a surplus under any scenarios it considered.

Prices pared earlier losses on Friday after U.S. retail sales and consumer sentiment indicators topped estimates.

China city Qingdao finds no new cases after testing 11 million residents
The total number of confirmed coronavirus cases in mainland China stands at 85,622, with 4,634 deaths. No new positive cases were reported from over 10 million tests in the city.

"Against that we still got Libya's supply is growing quite strongly".

Crude also fell as the dollar was headed for its best week of the month on Friday, as surging coronavirus cases and stalled progress toward USA stimulus had nervous investors seeking safe assets.

The Organization of the Petroleum Exporting Countries has not indicated any plan so far to scrap that supply boost. Given the uncertainty over the oil demand outlook, the right course of action is to wait for now, JPMorgan analysts including Natasha Kaneva wrote in a report.

The IEA said the forecast for a decline in demand by 8.4 million barrels per day (bpd) for this year to 91.7 million bpd is relevant only if OPEC+ fully complies with the terms of the deal to reduce production, and world reserves decrease by 4 million barrels per day in the fourth quarter.

OPEC+ is also contending with the unexpected return of Libyan oil output, which hit 500,000 barrels a day this week. Analysts polled by S&P Global Platts expected the EIA to report a drop of 2.3 million barrels in USA supplies for the week.

Zenith Energy U.S. LP agreed to buy oil-storage facilities in California from Plains All American Pipeline LP, including three terminals in the Los Angeles metro area and 50 miles (80 kilometers) of pipelines. Companies reported no major impact on operations.

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