Oil falls on worries about a new surge in coronavirus infections

Must Read

First Guyanese security firm attains ISO certification, looking to tap into O&G opportunities

Through the assistance of the Center for Local Business Development (CLBD), another Guyanese firm - MMC Security...

Suriname oil discoveries estimated at 1.4 billion barrels – Rystad Energy

Norway-based independent energy research and business intelligence company, Rystad Energy, says the three discoveries made offshore Suriname...

Liza 1 & 2 ‘will provide low cost energy for years to come’ – Hess CEO

Even as governments and international oil companies pursue efforts to reduce carbon emissions on a global scale...
OilNOW
OilNow is an online-based Information and Resource Centre which serves to complement the work of all stakeholders in the oil and gas sector in Guyana.

(Reuters) – Oil prices fell on Wednesday, reversing the previous session’s surge as worries about a second wave of the coronavirus pandemic outweighed support from a gradual reopening of global economies.

Brent crude, which on Tuesday rose to its highest level since a price plunge began in March, slipped 47 cents, or 1.1%, to $42.16 a barrel by 0814 GMT.

The benchmark crude has climbed from below $16 in April but remains a third lower than its level at the end of 2019.

U.S. West Texas Intermediate (WTI) crude fell 59 cents, or 1.5%, to $39.78 a barrel.

A rising number of coronavirus cases in the United States, China, Latin America and India has unnerved investors.

“These are all important oil demand centres. A second wave of infections and lockdowns will derail the global economic recovery and with it, oil demand and prices,” said Stephen Brennock of broker PVM.

Upbeat European manufacturing surveys offered some support, but European Central Bank chief economist Philip Lane said recent solid data was not necessarily a good guide and the euro zone economy would need a long time to recover.

Further pressure on prices came from a bigger-than-expected rise in U.S. crude inventories, according to industry group the American Petroleum Institute (API).

However, U.S. gasoline and distillate inventories fell, suggesting consumption was picking up as lockdowns were eased.

U.S. government data will be released on Wednesday.

Global oil demand has started to recover as economies emerge from lockdown, while the Organization of the Petroleum Exporting Countries (OPEC) and allied producers, a grouping known as OPEC+, have slashed output and U.S. shale producers have shut wells.

But global inventories are still bulging. India’s oil imports in May hit the lowest since October 2011 as refiners with brimming stores of crude cut purchases.

China, the world’s top crude importer, is also expected to slow crude imports in the third quarter, after record purchases in recent months.

- Advertisement -

Latest News

Suriname oil discoveries estimated at 1.4 billion barrels – Rystad Energy

Norway-based independent energy research and business intelligence company, Rystad Energy, says the three discoveries made offshore Suriname...

First Guyanese security firm attains ISO certification, looking to tap into O&G opportunities

Through the assistance of the Center for Local Business Development (CLBD), another Guyanese firm - MMC Security Force Company - has been...

Guyana’s history with oil dates back centuries

The possibility of Guyana having petroleum stemmed from observations of petroliferous occurrences recorded by Dutch explorers since the 1750s, but it was not until...

Liza 1 & 2 ‘will provide low cost energy for years to come’ – Hess CEO

Even as governments and international oil companies pursue efforts to reduce carbon emissions on a global scale in the move towards renewable...

Bharrat outlines more measures for managing Guyana oil resources

Guyana’s Minister of Natural Resources, Vickram Bharrat, has outlined a number of new policy directions for the extractive sectors including oil and...

More Articles Like This