2020-10-29 17:15:00
OIL PRICE: NOT ABOVE $37
REUTERS - OCTOBER 29, 2020 - Oil prices fell 5% on Thursday to their lowest since mid-June, extending the previous day's sharp decline on the potential impact renewed coronavirus lockdowns will have on oil demand.
December Brent crude LCOc1 futures were down $1.96, or 5%, at $37.16 by 1233 GMT. The more active January contract lost $1.89 a barrel to $37.75.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell $1.94, or 5.2%, to $35.45.
Both contracts plunged by more than 5% on Wednesday.
With COVID-19 cases surging across Europe, France will require people to stay at home for all but essential activities from Friday, while Germany will shut bars, restaurants and theatres from Nov. 2 until the end of the month.
“As lockdowns begin to bite on demand concerns across Europe, the near-term outlook for crude starts to deteriorate,” said Stephen Innes, chief global market strategist at Axi.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies will be monitoring the deteriorating demand outlook closely as well as rising supplies from OPEC member Libya.
OPEC and its allies, together known as OPEC+, plan on tapering production cuts in January 2021 from a current 7.7 million barrels per day (bpd) to about 5.7 million bpd.
“[We] believe it is increasingly unlikely that oil production will be stepped up from January,” Commerzbank said. “Instead, OPEC and its allies (OPEC+) would really need to implement further production cuts, given the weak prospects for demand.”
Libya is currently producing 680,000 bpd and expects production to rise to 1 million bpd in the next few weeks, a Libyan oil source said.
OPEC+ is scheduled to meet on Nov. 30 and Dec. 1 to set policy.
Oil had initially rebounded slightly from overnight losses in Asian morning trade on technical support and the prospect of tighter short-term supply as Hurricane Zeta slams Louisiana.
But the hurricane is forecast to weaken by Thursday morning in the United States and the return of U.S. production will add to existing oversupply.
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Earlier:
2020, October, 28, 14:15:00
OIL PRICE: NEAR $40
Brent were down $1.20, or 2.9%, at $40 a barrel, WTI was down $1.49, or 3.7%, at $38.08.
2020, October, 27, 14:50:22
OIL PRICE: NEAR $41 ANEW
Brent was up 52 cents, or 1.3%, at $40.98 a barrel, WTI gained 38 cents, or 1%, to $38.94.
2020, October, 26, 14:05:00
OIL PRICE: NEAR $41
Brent was down $1.08, or 2.6%, at $40.69 a barrel, WTI dropped $1.05, or 2.6%, to $38.80.
2020, October, 26, 14:00:00
U.S. SHALE SURVIVORS
The sector is in full-on merger mode in response to oil prices that have been stuck at around $40 a barrel in recent months after the Covid-19 pandemic hit global demand.
2020, October, 22, 15:20:00
OIL PRICE: NEAR $42
Brent were up 43 cents at $42.16 a barrel, WTI ticked up 44 cents to $40.47 a barrel.
2020, October, 22, 15:15:00
OIL, GAS WILL BE HALF
In 2040, despite increasing investments in renewables and concerns with emissions, oil and gas are still projected to make up about 50 percent of the global energy mix. This is a view held by major third-party sources.
2020, October, 1, 13:50:00
OIL PRICE: NEAR $42 ANEW
Brent fell 17, or 0.4%, to $42.13 a barrel, WTI were down 22 cents, or 0.6%, at $40.
