Market

Oil falls for third day on rising coronavirus infections, U.S. stockpiles By Reuters

© Reuters. FILE PHOTO: A worker holds a nozzle to pump petrol into a vehicle at a fuel station in Mumbai, India, May 21, 2018. REUTERS/Francis Mascarenhas

TOKYO (Reuters) – Oil prices fell on Thursday after a slump in the previous session, as rising U.S. stockpiles added to concerns about a hit to demand from surging coronavirus infections in Asia and possible U.S. rate hikes.

was down 6 cents, or 0.1%, at $66.60 a barrel by 0141 GMT, having fallen 3% on Wednesday. U.S. oil fell 7 cents, or 0.1%, to $63.29 a barrel, after a 3.3% drop in the previous session.

“A resurgence in COVID-19 cases across parts of Asia is doing little to support the market in the near term,” ING Economics said in a note.

Almost two-thirds of people tested in Indian show exposure to the coronavirus, suggesting a spiralling spread of the virus as the daily death toll rose to a record 4,529.

The decline in prices this week was given added impetus on Wednesday after media reports said the U.S. and Iran have made progress in talks over Tehran’s nuclear programme that could result in sanctions being lifted and more supply coming to the market.

Later reports indicated that more time was needed to reach an agreement.

Speculation the Fed might raise rates weighed on the outlook for economic growth and prompted investors to reduce exposure to oil and other commodities.

Rising U.S. stockpiles of crude also weighed on prices, although the gain in the most recent week was below expectations.

Crude inventories increased by 1.3 million barrels last week, against analysts’ expectations in a Reuters poll for a 1.6 million-barrel rise. [EIA/S]

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. 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. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Most Related Links :
Business News Governmental News Finance News

Source link

Back to top button