Oil prices fell on Friday, the longest losing streak since February 2020, as the number of COVID-19 infections spiked worldwide, stoking concerns about slowing fuel demand, while gasoline stocks faltered. The US unexpectedly increased, putting more pressure on oil prices.
Brent crude futures fell 87 US cents, or 1.3%, to $67.36 a barrel, after hitting its lowest since May 24 at $67.10 earlier in the session.
US crude oil (WTI) fell $1.05, or 1.6%, to $64.41 a barrel after falling to as low as $64.24, also the lowest since May 24.
WTI oil prices fell more than 7% while Brent fell more than 5% in a six-day losing streak, the longest since declines for both grades ended February 28, 2020.
Prices have fallen as investors remain worried about an increase due to the Delta variant of the coronavirus worldwide. The United States, the world’s largest oil user, has seen a spike in infections in the past month.
“Crude oil prices continue around late summer support levels of $65 for WTI crude and $67 for Brent,” said Craig Erlam, senior market analyst at OANDA Europe.
He further cited that slowing growth in China, the world’s largest oil importer, as the country imposed further restrictions due to an increase in COVID-19 infections has led to a drop in oil prices.
A surprise increase in US gasoline inventories last week also raised concerns about slowing demand, especially given the Northern Hemisphere summer is usually when demand for the fuel is at its highest.
The Energy Information Administration said gasoline inventories rose 696,000 barrels to 228.2 million barrels on Wednesday, different from analysts’ estimates for a 1.7 million-barrel drop.
However, US crude inventories fell 3.2 million barrels last week to 435.5 million, the lowest level since January 2020, the EIA said.
U.S. shale oil production is expected to rise to 8.1 million bpd in September, the highest since May 2020, according to the Energy Information Administration’s monthly report.
US natural gas prices recover from one-month low
U.S. liquefied natural gas (LNG) prices rose from a one-month low earlier on forecast supplies will remain tight, despite late-summer demand for the fuel used for air conditioning. air is reduced.
The futures contract for LNG gas futures rose 1.5 US cents, or 0.4%, to $3,852/mmBtu, after hitting its lowest since July 20 at $3,789.
Data provider Refinitiv said gas production in the 48 U.S. states averaged around 92 bcfd in August, up from 91.6 bcfd in July. That’s compared to an all-time high. was 95.4 bcfd in November 2019.
Gas to US LNG export plants is expected to rise to 11 bcfd over the next two weeks.
Source: VITIC/Reuters
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