Oil prices extended their losses to a third day on Thursday, as a surprising increase in U.S. crude stocks and a revival of COVID-19 cases in India and Japan raised fears that a recovery in demand could stop.
Brent crude futures fell 37 cents, or 0.57%, to $ 64.95 a barrel at 0904 GMT, after falling $ 1.25 on Wednesday. US West Texas (WTI) crude futures fell 35 cents (0.57%) to $ 61 after losing $ 1.32 the previous day.
Both contracts closed at their lowest since April 13 and this week by about 3%.
U.S. crude oil supplies rose unexpectedly in the week to April 16, the Energy Information Administration said Wednesday, with inventories rising by 594,000 barrels. Analysts had expected a drop of 3 million barrels, a Reuters survey showed. ,
“An unexpected and large increase in US stocks has raised concerns about weak demand,” said Rakuten Securities analyst Satoru Yoshida.
“What is hurting market sentiment is also the fact that the COVID-19 pandemic is spreading rapidly again in India and Japan, despite hopes that vaccinations would improve the infection situation.”
India, the world’s third largest oil user, on Thursday reported 314,835 new cases of coronavirus during 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 over Tokyo and three western prefectures that could last about two weeks, according to media reports. read more
Russia’s Deputy Prime Minister and OPEC + sources said that the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, a group known as OPEC +, should hold a largely technical meeting next week, in which major policy changes is unlikely. . read more
An addition to the clumsy sentiment is the progress of talks between Iran and world powers to resurrect nuclear power in 2015, PVM oil analyst Tamas Varga said. Iranian oil exports could jump and contribute to a crude oversupply if an agreement is reached. read more
“It’s the same old story, a better oil balance for the second half of the year competes with the current gloomy reality,” Varga said.
“Right now, the latter is winning, but it’s only a matter of time before this trend reverses.”
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