Investing.com - Financial Markets Worldwide
💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Oil prices drop on demand worries as coronavirus cases rise

Published 06/18/2020, 08:50 AM
Updated 06/18/2020, 09:00 AM
© Reuters.
LCO
-
CL
-

By Sonali Paul
MELBOURNE, June 18 (Reuters) - Oil prices fell more than 1%
in early trade on Thursday as a spike in new coronavirus cases
in China and the United States renewed fears that people would
stay home and stall a recovery in fuel demand even as lockdowns
ease.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were
down 1.6%, or 60 cents, at $37.36 a barrel at 0035 GMT, adding
to a loss of 42 cents on Wednesday.
Brent crude LCOc1 futures fell 1.1%, or 45 cents, to
$40.26 a barrel. The benchmark contract declined 25 cents on
Wednesday.
Worries about fuel demand rose after a surge in coronavirus
cases led Beijing to cancel flights and shut schools and several
U.S. states, including Texas, Florida and California, reported
sharp increases in new cases. A rise in U.S. crude stockpiles to a record high for a
second week in a row also weighed on sentiment, even though U.S.
government data showed inventories of gasoline and distillate,
which include diesel and heating oil, fell.
"People are concerned about the coronavirus resurging in
China and crude stockpiles rising," said Lachlan Shaw, head of
commodity research at National Australia Bank.
While prices dipped, they remained in the $35 to $40 band
they have been trading in so far in June, with the Organization
of the Petroleum Exporting Countries (OPEC) and other major
producers mostly sticking to promised supply cuts, U.S. shale
producers holding back output, and fuel demand gradually
improving.
"It's going to be up and down, rangebound for the next
little while on a balance of OPEC and ally cuts against the
massive inventory build and demand recovery and potential
restarts of production in the United States," Shaw said.


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.