Connect with us

Economy

Oil eases as coronavirus fears offset gasoline recovery signs

Published

on

Oil eases as coronavirus fears offset gasoline recovery signs


Oil prices drifted lower on Thursday as concerns about renewed COVID-19 lockdowns in the United States outweighed signs of a recovery in United States gasoline demand.

United States West Texas Intermediate (WTI) crude futures fell 14 cents, or 0.3 per cent, to $40.76 a barrel by 0229 GMT, after rising 0.7 per cent on Wednesday.

Brent crude futures slipped seven cents, or 0.2 per cent, to $43.22, after gaining 0.5 per cent on Wednesday.

“The market’s struggling to get strong conviction to the upside at the current point in time,’’ said Lachlan Shaw, Head of Commodity Research at National Australia Bank.

“There’s mixed evidence on demand.’’

Oil prices rose on Wednesday as data from the United States Energy Information Administration showed United States gasoline stockpiles fell by 4.8 million barrels last week, much more than analysts had expected, as demand climbed to 8.8 million barrels per day (bpd), highest since March 20.

A spike in COVID-19 cases across several United States states, however, raised the prospect of renewed lockdowns that would likely hold back any sustained recovery in fuel demand.

That has kept the benchmark crude contracts in tight ranges this week, although holding above $40 a barrel.

Gasoline demand was falling in areas where lockdowns were being reinstated in the United States, while demand on the United States East Coast, where coronavirus infections were under control, was recovering well, Shaw said.

The United States reported more than 58,000 new COVID-19 cases on Wednesday, the biggest increase ever reported by a country in a single day, with infections climbing in 42 out of 50 states, according to a Reuters tally.

The market is also in a holding pattern ahead of a meeting on July 15 of the market monitoring panel of the Organisation of the Petroleum Exporting Countries (OPEC) and its allies.

Together called OPEC+, the producers could decide to pare or extend their record 9.7 million bpd supply cut from August.

The panel has been pressing OPEC+ over-producers, such as Iraq and Nigeria, to improve their compliance with the curbs.

Angola has agreed to comply fully with its supply commitments, moving to cut more over July to September to make up for previous excess production, OPEC sources said this week.

Meanwhile, OPEC member Libya, which has been blockaded since January, is trying to resume exports, with Libya’s National Oil Corp lifting force majeure at the Es Sider oil terminal on Wednesday.

An oil tanker, however, was prevented from entering the port.

AIB

Edited By: Abdulfatah Babatunde (NAN)

Babatunde Abdulfatah: is a graduate and a professionally trained journalist, with experience in national news reporting/editing and verification at the News Agency of Nigeria. NNN is a media subscriber of the News Agency of Nigeria. NNN is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor[at]nnn.com.ng

Israel describes UN rejection of Iran arms embargo as ‘disgrace’ Amaechi, Mohammed inspect Lagos-Ibadan rail project  My album, “Jehovah”, lifts people going through challenges — Gospel songstress Total blackout in Rivers as angry youths shutdown Afam transmission lines Police arrest pastor, 5 others for alleged child theft in A’Ibom Delta approves 3 additional private schools for JSS exams Buhari rejoices with Kingsley Osadolor at 60 COVID-19: survivors say mental health key to defeating virus Kogi Poly expels 25 students for examination malprcatice NBS says 21.76m Nigerians unemployed in 2020 Refugee Commission commends Humanitarian Affairs Minister Latin America’s coronavirus cases exceed 6m Militants attack kills 2 policemen in Afghanistan’s eastern Kunar province Britain marks 75 years since Japan’s defeat in World War II S/Korea capital returns to tougher social distancing rules as virus cases spike Food security: Campaign for Democracy tasks Niger Govt. on security India set to mass produce COVID-19 vaccine, launches digital health mission – Modi UN rejects United States bid to extend Iran arms embargo ASUU kicks against alleged take over of institute by Kano Govt COVID-19: Nigeria records 7 more deaths, 329 fresh cases Barca’s Pique calls for wholesale changes after “shameful” defeat INEC seeks stakeholders collaboration in instituting electoral transparency Bayern Munich must stay grounded in spite of Barca demolition, coach says FC Barcelona’s Umtiti tests positive for COVID-19 Bauchi Gov. condoles family of murdered lawmaker, Mante Football united behind Infantino, FIFA general secretary says Council approves health care provision fund guideline Labour ministry denies complicity in human trafficking UN ‘strongly condemns’ rights abuses in Cameroon Tourism operators reveal Top 10 romantic destinations for honeymoon in Nigeria DG NTA lauds Lalong for peace efforts in Plateau Post COVID-19: Ministry holds public enlightenment on legal metrology Expert call for adequate funding to promote research on stem cell transplant JSS 3 students resume Aug. 16/17 – KDSG FG inaugurates committee of professionals to oversee intergovernmental affairs Mafa: Borno Govt resettles 2,800 displaced families 6-years after insurgents’ attack NAIC, AFAN partner to insure 40m farmers against flood, other disasters Lagos Assembly proposes N20m licence fee for lottery, betting operators Lagos govt charges Lagosians to plant coconuts trees Edo unemployment rate declines to 19% under Obaseki’s job creation drive-official PDP reconstitutes Kaduna State caretaker committee Nasarawa Deputy Governor tasks journalists on investigative reportage Sales rep docked over alleged theft of employer’s goods worth N430,000 Shop owners, traders lament as Kuje Council demolishes structures LASG reverses 10% service charge for trips on e-hailing platforms Unilag ASUU says no going back in rejection of VC’s removal Court remands 2 men over alleged serial robberies with knife, rape KEDCO loses N260m to vandalism in 3 months NCDMB Tower: A boost to local content — P100 companies Osun-Osogbo Festival ends with low turnout due to COVID-19