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 fall 1% as glut weighs

Published 05/11/2020, 06:15 AM
Updated 05/11/2020, 06:20 AM
© Reuters.
LCO
-
CL
-
USO
-

NEW YORK, May 10 (Reuters) - Oil prices opened about 1%
lower on Sunday as a persistent glut continued to weigh on
prices and the coronavirus pandemic eroded global oil demand
even as some governments began to ease lockdowns.
Brent crude LCOc1 was down 29 cents, or 0.9%, at $30.68 a
barrel by 6:05 p.m. ET (2205 GMT) while U.S. oil CLc1 fell 26
cents, or 1.1%, to $24.48 a barrel.
Global oil demand has plummeted by about 30% as the
coronavirus pandemic curtailed movement across the world.
"Oil companies are dealing with a plethora of challenges due
to the sudden decline in demand," Haseeb Ahmed, oil and gas
analyst at GlobalData, said in a note.
"North America is battling a severe shortage of storage
capacity ... it may be only a matter of time, before the country
(United States) runs out of storage space."
However, both benchmarks have notched gains over the past
two weeks as countries have eased lockdowns and fuel demand has
rebounded modestly. Oil production worldwide is also declining
to reduce a swelling supply glut. In a televised address, British Prime Minister Boris Johnson
announced on Sunday a limited easing of restrictions, including
letting people exercise outside more often and encouraging some
people to return to work. Spain registered its lowest daily number of coronavirus
deaths on Sunday since mid-March and half of its population
prepared for an easing of one of Europe's strictest lockdowns,
though not yet the residents of cities such as Madrid and
Barcelona.

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.