Oil On Track for Weekly Gain After Stumbling on Demand Doubts

Oil Holds After Longest Rally Since June With Stockpiles Easing

Meanwhile, crude imports into China dropped in July from a record the previous month, with vessels delayed in unloading cargoes as ports became congested with tankers carrying cheaper oil purchased earlier in the year. Analysts had expected an inventory decline of 3.267 million barrels for the week.

Despite some signs of reassuring news on the economic front, rising numbers of coronavirus cases continued to derail any progress and keep the markets nervous.

Saudi Arabia's state oil giant Aramco cut its September official selling prices (OSPs) for its Arab light crude for deliveries to Asia by 30 cents a barrel from August, and left its prices to the U.S. unchanged from the previous month. Increased tensions between America and China only add to the market anxiety.

Traders were also watching talks in the United States over the next coronavirus stimulus package.

Euro zone business activity returned to modest growth in July as some curbs imposed to stop the spread of the coronavirus eased, the Composite Purchasing Managers' Index from IHS Markit showed.

Stena Bulk AB, one of the world's biggest tanker lines, plans to run some of its ships on used cooking oil to offer customers a way to offset their pollution.

Futures traded below $42 a barrel as Trump signed executive orders prohibiting USA residents from doing business with WeChat, TikTok or the apps' Chinese owners.

Iraq has been a laggard in fully meeting its pledge.

Prince Abdulaziz is chairman of the OPEC's Joint Ministerial Monitoring Committee and he has been calling for stricter compliance all year and pressuring the countries who have resisted. That compared with a build of half a million barrels a week earlier.

Iraq said it would make an additional cut in its oil production of about 400,000 barrels per day in August to compensate for its overproduction over the past period under the OPEC supply reduction pact.

"However, the levels are nowhere near that seen in the USA, which is now on a downward trajectory".

With global demand still struggling, maintaining prices even at the current levels will be essential rather than face even lower prices.



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