2020-06-22 12:30:00
OIL PRICE: ABOVE $42 ANEW
REUTERS - JUNE 22, 2020 - Oil prices were steady on Monday, supported by tighter supplies from major producers but held in check by concerns over a record rise in coronavirus infections worldwide that could stall a recovery in fuel demand.
Brent crude LCOc1 rose 10 cents, or 0.2%, to $42.29 a barrel by 0826 GMT, while U.S. crude for August delivery CLc2 was at $39.87 a barrel, up 4 cents, or 0.1%.
South Korea said on Monday for the first time it is in the midst of a ‘second wave’ of the coronavirus. The World Health Organization reported a record increase in global coronavirus cases on Sunday, with the biggest increase from North and South America.
“Infections are rising in key markets around the world and there are valid concerns that the world is in for a prolonged period of dealing with its consequences,” said Rystad Energy’s head of oil markets Bjornar Tonhaugen.
Oil prices have been supported by a recovery in fuel demand globally following a collapse in April-May during virus shutdowns, as nations worldwide resume economic activity.
Signalling a recovery in global markets and tighter supplies, Brent has moved into backwardation, where oil for immediate delivery costs more than supply later. LCOc1-LCOc2
Both contracts rose about 9% last week. However, after weeks of rising, prices of physical oil have begun to ease, traders and analysts say, as the rally succumbs to the reality of poor refinery margins and brimming storage tanks.
“I find it more difficult for oil to move higher at this point, especially with the growing concern about second-wave contagion,” said Howie Lee, an economist at Singapore’s OCBC Bank.
In Canada and the United States, the number of operating oil and natural gas rigs fell to a record low last week, even as higher oil prices prompt some producers to start drilling again.
The OPEC+ group, consisting of the Organization of the Petroleum Exporting Countries and its allies, including Russia, has yet to decide whether to extend a record supply cut of 9.7 million barrels per day (bpd) for a fourth month in August.
However, Iraq and Kazakhstan pledged to comply better with oil production cuts during an OPEC+ panel on Thursday.
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Earlier:
2020, June, 19, 10:50:00
OIL PRICE: ABOVE $42
Brent rose 61 cents, or 1.5%, to $42.12 a barrel, WTI climbed 60 cents, or 1.5%, to $39.44 a barrel.
2020, June, 19, 10:45:00
ЦЕНА URALS: $37,556
Средняя цена на нефть Urals за период мониторинга с 15 мая по 14 июня 2020 года составила $37,556 за баррель
2020, June, 18, 11:35:00
OIL PRICE: NOT ABOVE $41 STILL
Brent were up 2 cents at $40.73 a barrel, WTI dropped 14 cents to $37.82 a barrel.
2020, June, 17, 12:50:00
OIL PRICE: NOT ABOVE $41 ANEW
Brent was up 29 cents, or 0.7%, at $41.25 a barrel, WTI rose 17 cents, or 0.4%, to $38.55 a barrel.
2020, June, 16, 14:25:00
OIL PRICE: NOT ABOVE $41 YET
Brent rose 77 cents, or 1.94%, at $40.49 a barrel, WTI gained 61 cents, or 1.64%, to $37.73 a barrel.
2020, June, 16, 14:05:00
GLOBAL UPSRTEAM INVESTMENTS DOWN
Spending is also expected to be largely flat in 2021, landing only marginally higher than 2020 at $386 billion. Before the Covid-19 pandemic, expected total upstream investment would maintain last year’s levels, both in 2020 and 2021.
2020, June, 16, 13:55:00
U.S. PRODUCTION: OIL (-93) TBD, GAS (-693) MCFD
Crude oil production from the major US onshore regions is forecast to decrease 93,000 b/d month-over-month in June from 7,725 to 7,632 thousand barrels/day, gas production to decrease 693 million cubic feet/day from 81,254 to 80,561 million cubic feet/day .
