Oil prices extended their losses to a third day on Thursday, as a surprise accumulated in U.S. crude inventories and the resurgence of COVID-19 cases in India and Japan, which dreaded could stop the recovery in demand.
Brent crude futures fell 37 cents, or 0.57%, to $ 64.95 a barrel at 0904 GMT, after falling $ 1.25 on Wednesday. U.S. West Texas Intermediate (WTI) crude futures fell 35 cents, or 0.57%, to $ 61 after losing $ 1.32 the day before.
Both contracts had closed at a low since April 13 and are down about 3% this week.
U.S. crude inventories rose unexpectedly between the week of April 16, the Energy Information Administration said Wednesday, with an inventory of 594,000 barrels. Analysts had expected a 3 million barrel drop, according to a Reuters poll. ,
“An unexpected and high rise in U.S. inventories fueled concerns about weak demand,” said Satoru Yoshida, an analyst at Rakuten Securities.
“What is hurting market sentiment is also the fact that the COVID-19 pandemic is spreading at an accelerated pace in India and Japan despite the hope that vaccinations would improve the infection situation.” .
India, the world’s third-largest oil user, reported 314,835 new coronavirus cases on Thursday in the previous 24 hours, the highest daily increase recorded anywhere. Japan, the world’s No. 4 oil importer, is expected to issue a third state of emergency in Tokyo and three Western prefectures that could last about two weeks, according to media reports. Read more
The Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, a group known as OPEC +, will have to hold a largely technical meeting next week, at which major changes in the political, according to Russian Deputy Prime Minister and OPEC + sources. . Read more
Bassist sentiment adds to talks between Iran and world powers to revive the 2015 nuclear deal, PVM oil analyst Tamas Varga said. Iranian oil exports could rise and add to an excess of gross supply if an agreement is reached. Read more
“It’s the same old story, a brighter oil balance for the second half of the year competes with the sad current reality,” Varga said.
“Right now the latter is winning, but it’s only a matter of time before that trend is reversed.”
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