Monday, 03 August, 2020

Oil prices gain on sharp United States crude inventory drop

Crude oil prices on track for monthly gain as dollar supports Oil edges up after sharp US crude inventory drop
Ginger Lawrence | 01 August, 2020, 00:45

US West Texas Intermediate (WTI) crude futures fell 6 cents, or 0.2%, to $41.21 a barrel at 0130 GMT, while Brent crude futures lost 7 cents, also 0.2%, to $43.68 a barrel.

Oil prices rose on Wednesday after an industry report showed that crude inventories in the United States decreased against expectations, giving the market a boost amid record increases of coronavirus infections in the USA and elsewhere.

Crude Oil Stocks Change in the US was -10.6 million barrels in the week ending July 24th, the weekly report published by the US Energy Information Administration (EIA) revealed on Wednesday.

USA crude was down 4 cents, or 1%, to $39.88 after dropping 3.3% in the previous session, also off lows not seen since July 10.

Oil prices rose on Friday and were on track for monthly gains, benefiting from news that US oil output cuts in May were the largest on record.

Globally, the economic outlook has dimmed again, with increasing coronavirus infections raising the risk of renewed lockdowns and threatening any rebound, according to Reuters polls of more than 500 economists.

Huawei unseats Samsung in smartphone ranking
The world's largest smartphone market is going to report a drop in shipments during the current quarter according to Digitimes . The company continues to struggle against mid-range competition from Chinese OEMs in many markets.

"After a bad day for big oil with awful earnings, we're starting to see the impact in barrels", said Phil Flynn, an analyst at Price Futures in Chicago.

"The virus is spreading like wildfire across the Americas while Europe and Asia are displaying worrying signs of a second surge in cases", Stephen Brennock of oil brokerage PVM said.

In coronavirus news, several USA states in the South and West reported their biggest one-day increase in coronavirus deaths Tuesday, fueling a bitter debate over the reopening of schools in the coming weeks. New infections in Australia hit a record on Thursday.

Attempts to provide relief amid the outbreak were in disarray as Republicans in the US disagreed over their own plan for providing $1 trillion in new coronavirus aid on Tuesday.

Indian refiners are cutting crude processing and shutting units for maintenance amid faltering fuel demand, officials at the companies said.

Oil prices rose on Friday and were on track for monthly gains, boosted by a weaker dollar in the face of continuing concerns over the recovery of the USA economy as the coronavirus ravages the world's biggest economy and oil consumer.