Oil prices have hit record highs since May as COVID remains “an elephant in the room”


Oil futures worried about the impact of COVID on prices from the pressure of energy demand since May on Wednesday, despite US government data revealing a weekly drop of more than 3 million barrels national stocks of crude oil. Post the lowest payout for.

EIA figures showed a decrease in crude and distillate inventories and a slight increase in gasoline inventories. This “is bullish and shows that demand for oil in the United States is not significantly affected by the growing number of COVID cases,” Research told MarketWatch. This data should “support the price in the short term, set the lower bound on WTI at $ 65 and put pressure on it towards $ 70”.

But COVID is “an elephant in the room right now,” he said.

West Texas Intermediate Crude Oil Delivered in September
CL00,
-0.45%

CLU21

It fell $ 1.13 (1.7%) to $ 65.46 a barrel on the New York Stock Exchange. October gross brent
BRN00,
-0.28%

BRNV21,
-0.28%,
The global benchmark fell 80 cents (1.2%) at ICE Futures Europe to $ 68.23 a barrel.

WTI and Brent Crude both marked the previous month’s lowest contract settlement since May 21, according to Dow Jones market data.

Investors fear that oil prices were too high during the rally, amid strong optimism that demand will return to normal. But now investors are forced to reassess those optimistic views and find that demand is actually a little slack, ”Think Markets market analyst Fawad Razaqzada said of EIA supply data. I mentioned this in the previous note.

He said oil inventories have been lower than expected in recent weeks as the last sharp drop in inventories has come to an end.

The EIA reported that gasoline inventories increased by 700,000 barrels each week, but distillate inventories decreased by 2.7 million barrels. According to an S&P Global Platts survey, gasoline supply is expected to decline by 2.3 million barrels, while distillate inventories are expected to increase by 700,000 barrels.

Among petroleum products, gasoline in September RBU21 fell 0.8% to $ 2.15 per gallon. September Kerosene HOU21 It fell 0.7% to $ 2.02 per gallon.

read: Gasoline prices may have peaked that year

Matt Smith, Director of Product Research at Clipper Data, said:

According to the EIA, the supply of distilled fuel oil, which replaces demand, fell from 3.7 million barrels last week to 4.3 million barrels last week. Meanwhile, the supply of finished motor gasoline fell from 9.4 million barrels last week to 9.3 million barrels.

According to EIA data, crude oil inventories at the Cushing, Oklahoma storage facility fell 1 million barrels per week and national oil production increased 100,000 barrels per day to 11, 4 million barrels.

Nymex concludes its action on natural gas this Wednesday September
NGU21,
-0.36%

Ahead of the EIA’s weekly goods supply update scheduled for Thursday, it was pegged at $ 3.85 per million U.K. thermal units, up 0.4%.

Previous Time for a cow tax? Buried in UN report is bad news about climate impact of factory farms
Next Is your school safe? ; Insurance Bureau of Canada Urges Action on Climate Change: CBC's Marketplace Checklist