BackOil holds under $40 with demand uncertainty keeping lid on gains
Oil held under $40 a barrel amid concern a resurgent coronavirus will lead to more demand-sapping restrictions, while an industry report gave a mixed picture of the supply situation in the U.S.
PremiumOil held under $40 a barrel amid concern a resurgent coronavirus will lead to more demand-sapping restrictions, while an industry report gave a mixed picture of the supply situation in the U.S.
Futures in New York for November delivery edged lower after rising 0.7% on Tuesday. The American Petroleum Institute reported crude stockpiles increased by nearly 700,000 barrels last week, while gasoline inventories shrunk by 7.7 million barrels, according to people familiar with the data.
Virus infections are rising again in some European countries -- including the U.K. and France -- while the U.S. death toll topped 200,000. Federal Reserve Chairman Jerome Powell said on Tuesday that the recovery in the American economy remains highly uncertain and will need further support.
After a sharp drop and then a partial recovery this month, oil prices are now back in the range they were in during the northern-hemisphere summer. With the demand outlook deteriorating in recent weeks, attention is now turning to the OPEC+ alliance and whether it will try to cut output to defend the market.
Libya, meanwhile, is signaling that it will return some supply back to the market, lifting force majeure restrictions at its Zueitina export terminal and evaluating the security situation at other ports, according to National Oil Corp.
On the U.S. Gulf Coast, Tropical Depression Beta has flooded Houston, but is weakening as it heads toward Louisiana. The storm isn’t expected to cause many issues for onshore refineries, and interruptions to offshore rigs aren’t likely to be long-lasting either.
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This story has been published from a wire agency feed without modifications to the text.
