Oil prices fell on Thursday after three days of profit, with the prospect of a rapid decline in demand due to travel bans offset hopes of US $ 2 trillion in stimulus. dollars will boost economic activity, Reuters reports.
At 8:05 Bulgarian time, European Brent crude fell 0.6% to $ 27.23 a barrel, while light US oil fell 1.4% to $ 24.15 a barrel. Both oil benchmarks have fallen by nearly 60% since the beginning of the year.
The US Senate on Wednesday backed a $ 2 trillion bill. dollars aimed at helping the unemployed and industries affected by the coronavirus epidemic. However, as demand shrinks rapidly and production increases, oil prospects remain unclear.
IHS Markit estimates global oil demand will shrink by more than 14 million barrels per day in the second quarter, leading to an unprecedented stockpile.
In the face of shrinking demand due to the collapse of negotiations between OPEC + members, Saudi Arabia is expected to deliver more than 10 million barrels a day since May, which will flood the market.
“At that point, the producers’ surplus will turn into a huge logistical headache, which then opens the possibility for oil prices to fall below its production costs,” said Steven Ines, a stock strategist at AxiTrader.
Vienna-based JBC Energy has said it expects global oil demand to fall even further – by 15.3 million barrels per day in the second quarter, which is likely to push guidance prices, at least temporarily, to about $ 10 a barrel.
US stocks rose 1.6 million barrels last week, the US Energy Information Administration said on Wednesday, marking the ninth consecutive week of increases.
By: MBS News.
Image: Maritime Info247.
Review: FlagMarkets.