Oil prices plummeted on Thursday, reversing early gains under pressure from rising COVID-19 infections in India and elsewhere. However, prices received some support from US crude inventories falling more sharply than expected.
Brent crude oil closed at $ 68.09, down 87 cents a barrel, or 1.3%. West Texas Intermediate (WTI) crude oil futures fell 92 cents, or 1.4%, to $ 64.71 per barrel.
The market should keep in mind that the danger of COVID still exists that threatens crude oil selling prices and could affect demand.
On Wednesday, both indicators reached their highest levels since mid-March and changed little after two days of gains.
With the spread of the virus from cities to villages in India, the second most populous country in the world, COVID-19 infections and deaths are breaking daily records. A record number of new infections in India, not coming off the headlines, are fueling fears that demand will recover more slowly.
The easing of restrictions in Europe and falling US crude oil stocks support prices.
The spread of vaccines continues, and the risk of a suppressed summer season travel continues. This concern must clear up quickly, the demand for motor fuels is solid and confidence in the recovery story in the market must be increased.
The Energy Information Administration said on Wednesday that US crude oil stocks fell more than expected last week due to increased refining output and increased exports. US crude oil stocks are estimated to have dropped to 8 million barrels last week, compared to the anticipated 2.3 million barrel decline, and net crude oil imports are estimated to fall to the lowest level in nearly 40 years per day.
Gasoline demand in the world’s largest oil importer is disappointing, with stocks rising last week.
