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Oil in decline due to low demand and high OPEC supplies

by Bunkerist
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Oil prices fell on Thursday as the demand outlook was weakened by rising coronavirus cases and price pressure from the rise in OPEC output last month. The losses remained limited to hopes of US financial incentives.

Brent crude futures fell 17, or 0.4%, to $42.13 a barrel by 0818 GMT and U.S. West Texas Intermediate (WTI) crude futures were down 22 cents, or 0.6%, at $40.

The epidemic infected more than 7.2 million people and killed more than 206,000 in the United States alone.

Increased oil supply from the Organization of Petroleum Exporting Countries (OPEC) makes to think the production in September increased 160,000 barrels per day (bpd) from August.

The increase was largely due to higher supply from Libya and Iran, who are both exempted from the oil supply agreement,  rather than allies led by Russia known as OPEC +. Increasing supply from OPEC + will put the market’s efforts to grapple with still weak demand at risk.

Prices are backed by rumors that the world’s largest economy is working on a new stimulus package worth more than $ 1.5 trillion, and it reduces the losses.

A trade union in Norway said it would extend offshore industrial action to four additional areas from 4 October, after dozens of workers went on strike at an oil field.

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