Investing.com - Financial Markets Worldwide
Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Oil falls on demand concerns, U.S.-China tensions

Published 05/27/2020, 08:26 AM
Updated 05/27/2020, 08:30 AM
© Reuters.
LCO
-
CL
-

TOKYO, May 27 (Reuters) - Oil prices fell on Wednesday on
concerns over how quickly fuel demand will recover even as
lockdowns ease in many countries with falling coronavirus cases,
with U.S.-China tensions adding to pressure.
Brent crude LCOc1 futures fell 40 cents, or 0.7%, to
$35.77 by 0009 GMT, after falling 1.8% on Tuesday. U.S. West
Texas Intermediate (WTI) crude futures CLc1 were down 49
cents, or 1.2%, at $33.95 a barrel, having risen 3.3% the
previous session.
The Organization of the Petroleum Exporting Countries and
producers including Russia, a grouping referred to as OPEC+, are
cutting their output by almost 10 million barrels per day in
May-June to buttress prices as the coronavirus pandemic
quarantines have slashed fuel demand.
In the United States, where some states are opening up after
lockdowns, optimism about demand recovering has supported
sentiment, but the recovery is fragile, analysts caution as the
Memorial Day holiday just passed in the United States typically
heralds the start of the peak demand season.
"Early estimates suggest gasoline demand is down by as much
as 30% from last year as people stay close to home," ANZ
Research said in a note.
Still as U.S. demand picks up, however slowly, there are
signs that inventories are falling. U.S. crude inventories are
forecast to have fallen for a third week last week, according a
Reuters poll of analysts. EIA/S
Prices were also under press after U.S. President Donald
Trump's economic adviser, Larry Kudlow, said China was making "a
big mistake" with national security legislation on Hong Kong.

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.