Investing.com - Financial Markets Worldwide
Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Oil prices add to losses as supplies swell amid weak demand

Published 09/11/2020, 09:17 AM
Updated 09/11/2020, 09:20 AM
© Reuters.
CL
-
LCOC
-

TOKYO, Sept 11 (Reuters) - Oil prices extended declines on
Friday, under pressure from a surprise rise in U.S. stockpiles
and ongoing weak demand from the coronavirus pandemic.
Brent crude LCOc was down 8 cents, or 0.2%, at $39.98 a
barrel by 0110 GMT, after falling nearly 2% on Thursday, while
U.S. crude CLc1 was off by 2 cents at $37.28 a barrel, having
fallen 2% in the previous session.
Both major benchmarks were headed for a second week of
declines.
In the United States, stockpiles rose last week against
expectation as refineries slowly returned to operations after
production sites were shut down due to storms in the Gulf of
Mexico and wider region.
"Crude production is starting to return following a couple
of storms, but a weak demand outlook and the start of
maintenance season will keep the pressure on oil prices," said
Edward Moya, senior market analyst at OANDA.
Crude inventories in the United States rose 2.0 million
barrels last week, against expectations for a 1.3 million-barrel
decrease in a Reuters poll. EIA/S ENERGYUSA
In a further bearish sign, traders were starting to book
tankers again to store crude oil and diesel, amid a stalled
economic recovery as the COVID-19 pandemic continues unabated.
Onshore storage remains near capacity as supplies continue
to outpace demand, so the use of so-called floating storage is
back in vogue as cheap financing costs and the spread between
contracts for delivery now and later months makes it favourable
for traders to hold oil for later sale.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.