Oil prices slip as rising coronavirus cases stoke demand concerns

OPEC raises 2020 demand forecast over China's recovery

Prices had traded lower earlier in the session after applications for USA state unemployment benefits unexpectedly jumped last week to the highest since August, boding poorly for a sustained recovery in demand.

Brent futures fell 16 cents, or 0.4%, to settle at $43.16 a barrel, while USA crude fell 8 cents, or 0.2%, to settle at $40.96.

Oil markets climbed for a third day despite a resurgence in COVID-19 infections across Europe potentially denting fuel demand.

Later in the session, the API will publish its weekly report on United States crude oil supplies (-3.36M exp.) ahead of Thursday's report from the EIA and Baker Hughes' weekly figures on the United States drilling activity on Friday.

The heads of two of the world's biggest oil producers, Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman, discussed the situation in energy markets during a telephone call, the Kremlin said on Tuesday.

Meanwhile, non-OPEC supply was revised higher slightly to 62.8 million b/d for 2020, a drop of 2.4 million b/d from 2019. Those drawdowns were almost double analysts' expectations in a poll.

The Organization of the Petroleum Exporting Countries (OPEC) also forecast a slower demand recovery on Tuesday.

Oil prices edged down on Wednesday under pressure from growing concerns that a recovery in fuel demand will be stalled by soaring coronavirus cases around the world.

"Crude prices are looking very vulnerable as the coronavirus continues to spread like wildfire across Europe and trending higher in the USA", said Edward Moya, a senior market analyst at OANDA.

The U.S. Energy Information Administration is due to release its weekly data on Thursday, a day later than normal following a public holiday.

OPEC and allies in a group called OPEC+ are due to taper production cuts in January by 2 million barrels per day (bpd), from 7.7 million bpd now. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes.



Latest news

Drakeford "genuinely baffled" by PM on Covid travel restrictions
Police in Wales have already been monitoring traffic for Welsh local lockdown areas, where travel is restricted to and from. Today Mr Drakeford said none of the areas would be taken out of local lockdown as the trend across Wales was "worsening".

ONS survey: England seeing 27,900 new Covid-19 cases per day
No associations were found between non-O blood groups and comorbidities that might explain infection rate differences. Research is correlating the idea that people with blood group O are on a little advantage during this pandemic.

Elderly man, who was placed alive in a freezer in Salem, dies
After he was pronounced dead on Monday, his family took his body home and called a local undertaker to send a freezer box. According to sources, the doctor issued a death certificate and asked to take the patient back home.

Justices to weigh Trump census plan to exclude noncitizens
The administration says it is exploring options such as using other government records to determine how many people to exclude. Update :This article and its title have been updated to reflect the new Census deadline of October 15, 2020.

Rangers remain top with statement win in Old Firm derby against Celtic
Start at 12:00 p.m. "We had Ajeti not fully fit, Griffiths not fully fit, Edouard out", said Lennon. The second goal is bad from our point of view and you will watch the game after that.

Other news