Oil prices plunged on Tuesday amid concerns of rapidly filling crude storages globally. On top of that, demand may only recover once restrictions on economic and social activity will be lifted.
U.S. West Texas Intermediate crude futures slipped 12.8%, or $1.64, at $11.14 per barrel. Brent crude futures dropped 4.3%, or 85 cents, at $19.14 per barrel.
Despite the 9.7 million bpd production cut to be implemented on May 1 by OPEC and its allies including Russia, that volume might not compensate for the drop in demand.
Due to the fall in demand, 85% of oil storages worldwide are estimated to have been filled as of last week, according to data by Kpler.
Oil traders have resorted to hiring expensive U.S. vessels to store or ship oil overseas as the oil industry is desperate to find storage.
Oil traded higher on Friday, further reclaiming lost ground from three-week lows in the previous session as the COVID-19 situation continued to dent the global economy as well as oil consumption. Brent crude gained 0.3%, trading at $43.08 ...
On Thursday, the United States’ Gross Domestic Product (GDP) suffered the biggest economic decline in the second quarter as the surge of coronavirus cases affected the whole country. The U.S. government decided to shut down restaurants, ...
Oil prices fell on Thursday as the rising global coronavirus cases weighed on fuel demand recovery just as OPEC+ producers are set to increase supply. The Brent contract for October slid 0.05%, or 2 cents, at $44.07 per barrel, while the September ...
Samsung Electronics Co Ltd looks forward to the second half of the year as it expects a larger increase in chip demand brought by new smartphone launches. However, the company warned that the coronavirus crisis and trade disputes carry risks. Samsung, ...
The second quarter had seen Australian consumer prices dropping by a record. This could be attributed to the coronavirus crisis dragging child care cost and petroleum prices, inflicting a serious damage to years of growth toward higher inflation. Last ...