Oil-Barrel Falls as Rise in Coronavirus Cases Causes Demand Concern

Oil-Barrel Falls as Rise in Coronavirus Cases Causes Demand Concern

File photo of the Suzunskoye oil field in Rosneft north of the Siberian city of Krasnoyarsk

© Reuters/Sergei Karpukhin
File photo of Rosneft’s Suzunskoye oil field north of the Siberian city of Krasnoyarsk

Por Jessica Jaganathan y Dmitry Zhdannikov

SINGAPORE / LONDON, Oct 14 (Reuters) – Oil prices fell on Wednesday, pressured by mounting concerns that a recovery in fuel demand will stall due to mounting coronavirus cases around the world.

* At 1038 GMT, December Brent crude oil futures were down 27 cents, or 0.64%, at $ 42.18 a barrel, while US West Texas Intermediate (WTI) oil was down 33 cents, or 0.82% to $ 39.87.

* “There is a risk that the recovery in demand will be slowed by the recent increase in COVID-19 cases in many countries,” the International Energy Agency said on Wednesday.

* “The long term offers little stimulus for producers; the curve shows that prices will not reach 50 dollars a barrel until 2023. In truth, those who want to achieve a tighter oil market are looking at a moving target,” he added .

* The Organization of the Petroleum Exporting Countries (OPEC) cut its forecast for oil demand on Tuesday, citing economic disruptions caused by the virus.

* Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman, leaders of two of the world’s largest oil producers, discussed the state of energy markets during a phone call, the Kremlin said on Tuesday.

* OPEC and allied producers such as Russia, a group known as OPEC +, will stick to plans to partially lift cuts to oil production starting in January, United Arab Emirates’ energy minister Suhail al- said on Tuesday. Mazrouei.

* “Crude prices look very vulnerable as the coronavirus continues to spread like wildfire across Europe and is on an upward trend in the United States,” said Edward Moya, senior market analyst at OANDA.

* US oil inventories would have fallen last week, while distillates would have added their fourth consecutive week of declines, a preliminary Reuters poll showed on Tuesday.

* The survey was conducted prior to reports from the American Petroleum Institute and the Energy Information Administration. Both reports were delayed one day due to a US holiday on Monday.

(Reporting by Jessica Jaganathan; Edited in Spanish by Ricardo Figueroa)


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