Oil is cheaper because of the coronavirus and production growth in the United States

Нефть дешевеет из-за коронавируса и роста добычи в США

Oil is cheaper on the background of the jump in incidence COVID-19 and growth of US stocks, Brent below $40 per barrel.

Oil prices fall on Thursday amid rising numbers of new cases of infection with coronavirus infection in a number of countries, as well as increasing oil reserves in the United States for the third week in a row.

The cost of the August futures for Brent crude on London’s ICE Futures exchange at 7:55 SQ Thursday is $39,91 per barrel, or $0,4 (0.99 per cent) below the price of closing of previous session. At the end of trading on Wednesday, the contract fell $2,32 (5,4%), to $of 40.31 per barrel.

The WTI crude for August in electronic trading on the new York Mercantile exchange (NYMEX) by this time has fallen in price by $0.31 (0.82 percent) to $37,7 per barrel. On the eve of the value of these contracts decreased by $2,36 (5,9%), to $38,01 per barrel.

“Serious concern is the rise in the number of infections COVID-19 in several us States, including California, Texas and Florida,” notes analyst at Tyche Capital Advisors Tariq Zahir.

“There are fears that the removed constraints can be back — quoted expert MarketWatch. — Also, again, the question arises about the prospects for oil demand”.

The world health organization (who) notes the increase in the number of new cases of infection COVID-19 in the United States, China and Latin America.

“If a pandemic will trigger a second wave of restrictive measures, storage facilities may not be able to hold untapped oil and gas”, — noted in the review Rystad Energy.

World oil is cheaper again: how much is Brent and WTI

Data from the U.S. Department of energy, published on Wednesday, showed the growth of oil reserves in the United States at the end of the third week in a row by 1.4 million barrels. Experts polled by S&P Global Platts, predicted the decrease in reserves of 100 thousand barrels.

Oil reserves in Cushing, where oil traded on NYMEX, declined for the week by 1 million barrels. Oil production in the US increased by 500 thousand barrels per day (b/d), up to 11 million b/d.

Reserves of gasoline last week fell 1.7 million barrels, distillates — have increased by 249 thousand barrels. Experts on average had expected a decline in gasoline stocks of 1.9 million barrels and increase in distillate stocks on 100 thousand barrels.