Oil broadly stable despite rising Covid cases, regains earlier losses
US crude oil stockpiles rose last week, although gasoline and distillate inventories fell more than expected, data from industry group the American Petroleum Institute showed.Updated: Jul 08, 2020 16:13 IST
Oil prices were broadly stable on Wednesday, recouping earlier losses after rising US crude stockpile data and an increase in coronavirus infections in the United States cast doubts over a swift pickup in oil demand.
Brent crude futures fell 1 cent to $43.07 a barrel by 0832 GMT US West Texas Intermediate (WTI) crude futures dropped 8 cents to $40.54 a barrel.
Both benchmarks are set for a fourth session of daily percentage changes of less 1% in either direction.
The US coronavirus outbreak crossed a grim milestone of over 3 million confirmed cases on Tuesday as more states reported record numbers of new infections.
US crude oil stockpiles rose last week, although gasoline and distillate inventories fell more than expected, data from industry group the American Petroleum Institute showed.
“Yesterday’s lull in price action in the oil market is continuing this morning even as sentiment is sullied by renewed U.S. glut fears...the search continues for a catalyst to break oil out of its range,” said PVM analysts in a note.
The US Energy Information Administration (EIA) said on Tuesday that US crude oil production is expected to fall by 600,000 barrels per day (bpd) in 2020, a smaller decline than the 670,000 bpd it forecast previously.
EIA crude stock data is due later on Wednesday.
Key ministers in the OPEC+ grouping of oil exporters are due to hold talks next week about the future of their record output cut deal which is due to taper off from next month.
Abu Dhabi National Oil Co (ADNOC) plans to boost oil exports in August, the first signal that OPEC+ countries are preparing to ease output cuts, three sources familiar with the development told Reuters.
Meanwhile, Libya’s National Oil Corporation said a forced shutdown in production since January was expected to result in output dropping to 650,000 barrels per day (bpd) in 2022 from about 1.2 million bpd achieved at the start of 2020.