Aircraft & Manufacturers
Air France has accelerated plans to phase out its Airbus A380 fleet and will retire the aircraft ...
23 OCTOBER, 2017 Boeing and Mitsubishi Heavy Industries (MHI) have entered an agreement that ...
  Airlines business
Gulfstream delivered 30 business jets during the third quarter, one more unit than the same period . ...
Hãng hàng không Quốc gia Vietnam Airlines cho biết sẽ khai thác trở lại đường bay Hà Nội - Tuy Hoà . ...
Embraer Executive Jets delivered the first midsize Legacy 500 assembled at its recently expanded ...
Thurday, 03/06/2020, 10:24:11 AM
Oil falls as fears of second coronavirus wave take hold, U.S. stockpiles rise
Comment Comment |  Send To E-mail Send To E-mail |  Print Print

TOKYO (Reuters) - Oil prices fell on Wednesday on concerns about a possible second wave of coronavirus cases in countries easing lockdowns, which could prompt renewed movement restrictions, while industry data showed U.S. crude inventories are still rising.

The concerns overshadowed a further call by Saudi Arabia for larger production cuts to balance the market following a virus-induced demand slump, after the Organization of the Petroleum Export Countries’ (OPEC) biggest producer said earlier this week it planned to add to output cuts again.

Brent crude LCOc1 dropped 40 cents, or 1.3%, to $29.58 a barrel by 0658 GMT, having risen 1.2% on Tuesday.

West Texas Intermediate crude futures fell 10 cents, or 0.4%, to $25.68 a barrel, after rising 6.8% in the previous session.

 “Oil prices are being undercut by fears that a resurgence of the coronavirus may prompt countries to keep lockdowns in place for longer, hurting global economic activity and energy demand,” said Avtar Sandu, manager, commodities at Phillip Futures in Singapore.

U.S. infectious disease expert Anthony Fauci on Tuesday told Congress that easing coronavirus lockdowns may set off new outbreaks of the illness, which has killed 80,000 Americans and badly damaged the world’s biggest economy and oil consumer.

New outbreaks have been reported in South Korea and in China, where the health crisis started before spreading around the world, prompting governments to lock down billions of people, devastating economies and demand for oil.

On the supply side, Saudi Arabia’s cabinet has urged OPEC+ countries to reduce oil output further to restore balance in global crude markets, the country’s state news agency reported early on Wednesday.

Kuwait Petroleum Corp (KPC) will export less crude oil in June by requiring customers to cut 5% from the volume of their cargoes in line with the so-called operational tolerance clause in their contracts, two sources with knowledge of the matter told Reuters on Wednesday.

On Monday, Saudi Arabia said it would add to planned cuts by reducing production by a further 1 million barrels per day (bpd) next month, bringing output down to 7.5 million bpd.

OPEC and other producers such as Russia - a group known as OPEC+ - agreed to cut output by 9.7 million barrels per day (bpd) in May and June, a record reduction, in response to a 30% fall in global fuel demand.

In the United States, inventories of crude oil rose by 7.6 million barrels last week to 526.2 million barrels, against analysts’ expectations for an increase of 4.1 million barrels, the American Petroleum Institute (API) said on Tuesday.

Still, stocks of crude at the Cushing, Oklahoma, delivery hub fell by 2.3 million barrels, API said, which, if confirmed by official data, would be the first drawdown since February, according to ING Economics.

 “Concerns over hitting storage capacity have eased, as we see demand gradually recovering, along with supply cuts hitting the market,” ING said in a note, pointing to the decline in Cushing stocks.

Official storage data from the U.S. Energy Information Administration is due later on Wednesday.


Comment Comment |  All Comment
Other news [Back]
 Oil Rises to Trade Near 10-Day High on Europes Debt Measures, North Korea  (01/12/2010)
 Airbus and British Airways Join Forces with Cranfield University to Accelerate Availability of Algae for Aviation Fuel  (20/09/2010)
 Chinas airlines hit with domestic fuel price increase  (19/07/2010)
 EADS demonstrates 100% biofuel-powered flight  (30/06/2010)
 Hedge Funds Cutting Bullish Oil Futures Bets: Energy Markets  (14/06/2010)
 Rising Drilling Costs Mean $90 Crude in 2018: Energy Markets  (28/05/2010)
 Jet-fuel price bounces back  (21/04/2010)
 Airline claims first with gas  (16/10/2009)
 Exxon to Unveil $600 Million Biofuels Spending Today, NYT Says  (15/07/2009)
 Downward pressure on world jet fuel prices, global tourism outlook slashed  (03/07/2009)
 Gazprom clinches Azeri energy deal  (03/07/2009)
 Price of jet fuel jumps 22 percent  (26/06/2009)
 Jet Fuel Price Monitor  (12/06/2009)
 VALC News
On 19 Dec 2012, VALC successfully took delivery of the A321-231 aircraft with MSN 5418. This is the ...
Chi tiết
At 17:00 5th September, 2012 local time in Hamburg, Vietnam Aircraft Leasing Company (VALC)   ...
PRESS RELEASE  23-08-2012 11:12am
VALC delivered the first A321-200 to Vietnam Airlines.
Chi tiết
On November 5th, 2011, Vietnam Aircraft Leasing Company (VALC) took delivery of the EC155 B1 ...
VALC Valc, leasing, aircraft, plane, airlines, fastmoney, boeing, airbus, việt nam, airlines, viet nam, finance, investment Copyright © 2008 VALC.COM.VN
Back to top
Homepage  |   Contact  |   Make your homepage  |   Introduce VALC  |   RSS  RSS Feeds
Copyright © 2008 VALC.COM.VN. All Rights Reserved. Address: 6th Floor, No. 18 Ly Thuong Kiet Str., Phan Chu Trinh Ward, Hoan Kiem Dist., Hanoi, Vietnam.