Oil drops as demand risk rises, U.S stockpiles fall less than expected

August 20, 2020
17 Views

Oil prices fell on Thursday as major producers warned of a risk to demand recovery if the coronavirus crisis is prolonged as U.S. crude inventories dropped less than expected.

Brent crude was down 36 cents, or 0.8 per cent at $45.01 a barrel by 0442 GMT, having slipped 0.2 per cent in the previous session.

U.S. oil was down 38 cents, or 0.9 per cent at $42.55 a barrel, after inching higher on Wednesday.

Stockpiles of crude in the U.S. fell a fourth straight week, even as net imports rose, the Energy Information Administration (EIA) said on Wednesday.

However, the 1.6 million-barrel decline for the week to Aug. 14 was less than a Reuter’s poll showing expectations for a 2.7 million-barrel fall.

Fuel demand was down 14 per cent from the year-earlier period over the last four weeks, the EIA data also showed.

Global oil demand should recover to pre-pandemic levels as soon as the fourth quarter, the Saudi Energy Minister said on Wednesday, while urging the Kingdom’s OPEC+ partners to comply with a deal to cut output.

Saudi Energy Minister, Prince Abdulaziz bin Salman, was speaking at a virtual meeting of the Organisation of the Petroleum Exporting Countries (OPEC) and allies such as Russia – a grouping known as OPEC+.

The meeting was reviewing compliance with production cuts and left output reductions unchanged.

“The positive outcome from the OPEC+ meeting was counter-balance to the EIA reporting that U.S. oil inventories last week fell by (less than the) consensus,’’ said Avtar Sandu, Senior Manager, Commodities at Phillip Futures.

Still, a draft OPEC+ statement, seen by Reuters, said a second extended wave of the pandemic posed a major risk for the oil market recovery.

The group pressed members such as Nigeria and Iraq to do more to meet their quota commitments after they exceeded them between May and July.

OPEC on its own, in past decades, generally produced well over 30 million barrels per day (bpd) of oil but after this year’s cuts, its output has fallen to 20 million to 22 million bpd.

NAN

YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE

More Shocks As Unemployment Data Exposes Misery Status Of Nigerians
BEFORE now, economic and finance experts found it difficult to assess the healthy nature of the labour market and how to measure the impact of government policies targeted at creating jobs because of lack of real time labour data. But on Friday, August 14, 2020, the concerns were only slightly eased as the National Bureau of Statistics (NBS) published second quarter (Q2):2020 labour statistics, the first report since Q3:2018…

MONDAY LINES: Obasanjo’s (D)Art Of Condolence
Ben Guriano of The Washington Post described them in 2018 as ‘taboo enforcers.’ These are trolls seeking to upend truth and subvert facts about the life and times of the dead. ‘Do not speak ill of the dead’ came originally from a Spartan philosopher, then it was latinated by the Romans to read De mortuis nihil nisi bonum – and got spread around the world like Chinese viruses. The black man, as in all cases, contracted the no-no and turned it into a religion, got drunk with it and won’t mind killing for it…

2.4 Million Households To Benefit From FG’s Stimulus Package — Presidential Aide
TO ensure food security for citizens, at least 2.4 million households will benefit from the Federal Government’s post-COVID-19 stimulus package, a presidential aide says. Dr Andrew Kwasari, Senior Special Assistant (SSA), to the President on Agriculture, disclosed this in an interview with the News Agency of Nigeria (NAN) on Sunday in Abuja. Kwasari spoke against the backdrop of projects anchored by the Nigerian Economic Sustainability Committee (NESC) to secure the economy against the effects of COVID-19…

SERAP Demands Withdrawal Of Broadcasting Code Seeking To Sanction Contents ‘Insulting’ Leader
THE Socio-Economic Rights and Accountability Project (SERAP) has sent an open letter to President Muhammadu Buhari, urging him to “urgently instruct the Minister of Information and Culture, Mr Lai Mohammed, and the National Broadcasting Commission (NBC) to withdraw the apparently illegal broadcasting code and memo threatening to sanction any broadcast that denigrates, disrespects or insults the president, governors…

You may be interested

Tory Lanez breaks silence, denies shooting Megan Thee Stallion
Entertainment
Entertainment

Tory Lanez breaks silence, denies shooting Megan Thee Stallion

admin - September 25, 2020

Tory Lanez has finally broken his silence on shooting popular rapper, Megan Thee Stallion’s feet. Recall that Megan Thee Stallion…

EPL: What Edouard Mendy said after joining Chelsea
News
News

EPL: What Edouard Mendy said after joining Chelsea

admin - September 25, 2020

New Chelsea signing, Edouard Mendy, has said that he was very proud after joining the Blues from Rennes on Thursday.…

Two killed as land grabbers ‘drag’ gun with police in Ogun
News
News

Two killed as land grabbers ‘drag’ gun with police in Ogun

admin - September 25, 2020

Two persons have been killed in Ikogbo, a community in Ado-Odo/Ota Local Government Area of Ogun State. The victims reportedly…

Leave a Comment

Your email address will not be published.