Oil drops 15%, extending Monday’s 25% decline

NewsColony
Oil drops 15%, extending Monday’s 25% decline

A worker prepares to lift drills by pulley to the main floor of a drilling rig in the Permian basin.

Brittany Sowacke | Bloomberg | Getty Images

Oil prices slid more than 15% during overnight trading, extending Monday’s nearly 25% decline on ongoing fears that storage around the world is rapidly filling.

West Texas Intermediate, the U.S. benchmark, slid 15.3%, or $1.96, to trade at $10.82 per barrel, while international benchmark Brent crude traded 3.8% lower at $19.23 per barrel. On Monday, WTI fell 24.56%, or $4.16, to settle at $12.78 per barrel. International benchmark Brent crude fell 6.76% to settle at $19.99. Each contract is coming off its eighth week of losses in nine weeks.

The coronavirus pandemic has erased as much as a third of global demand for oil, according to some estimates, which has sent prices tumbling to record lows.

“The June contract is falling due to the reality of demand levels being well below current production levels and limited storage options,” Reid Morrison, PwC oil and gas advisory leader, told CNBC. “Choppiness in the markets will be significant as economies deal with lockdowns and returning to normal,” he added.

Prices were also pressured on Monday after the United States Oil Fund, which trades under the ticker ‘USO’ and is popular with retail investors, said it would sell all of its contracts for June delivery beginning Monday, in favor of longer-term contracts.

“The move [by the USO] is a recognition of the bleak prospects for the US oil sector in May and June,” said Cailin Birch, global economist at The Economist Intelligence Unit.

As demand drops more and more producers have announced production cuts. But some believe it won’t be fast enough to combat the unprecedented fall-off in demand from the pandemic.

Earlier in April, OPEC and its oil-producing allies agreed to a record production cut that will take 9.7 million barrels per day off the market beginning Friday, while Exxon and Chevron are among the U.S.-based companies that have scaled back operations.

But sill, Birch noted that even as crude prices have dropped U.S. oil production held at a record level in the first quarter of 2020, “filling up almost all available storage capacity.”

WTI and Brent are both on pace for their fourth straight month of losses for the first time since 2017.

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.

Source: Cnbc

The post Oil drops 15%, extending Monday’s 25% decline appeared first on NewsColony.
NewsColony

from WordPress https://ift.tt/359nR7L

Comments

Volunteers book hotel room for homeless man with SingapoRediscovers vouchers

NewsColony Volunteers book hotel room for homeless man with SingapoRediscovers vouchers © The Independent Singapore Singapore — A group of volunteers from the Mummy Yummy Singapore welfare organisation donated their SingapoRediscovers Vouchers to book a hotel room for a homeless man. The man, who was identified as Jayden, did not have a place to live while waiting for the Housing Board (HDB) to allocate him a rental flat. In a Facebook post on Mummy Yummy Singapore’s page on Wednesday (Dec 16), the volunteers said: “We used our $100 Rediscover Singapore vouchers to redeem hotel stay for him and successfully booked 9 days worth of stay at 3 days per voucher.” They added that they were unable to book a longer stay because of higher hotel rates over Christmas and New Year. The volunteers hoped that they would be able to bridge Jayden’s stay until he got a flat. “Thanks our government for giving us these vouchers which in return we can put them to good use for people in need,” th...

17 gifts from Oprah’s Favorite Things you can get by Christmas

NewsColony 17 gifts from Oprah’s Favorite Things you can get by Christmas (CNN) — Oprah Winfrey has pretty impeccable taste, and this year, she’s gifted us once again with her Favorite Things list, available to shop via Amazon . We’ve gone through and pulled out some of our own favorite picks from the list, which features products for everyone on your holiday gift list at a range of prices. And while, obviously, it’s Oprah, so everything included is great, we especially love her picks from Black- and female-owned small businesses. Check out our top gift picks below, and browse all of Oprah’s Favorite Things on Amazon. Iconi Women’s Seamless High-Waisted Leggings ($45; amazon.com ) Iconi Women’s Seamless High-Waisted Leggings PHOTO: Amazon These comfortable leggings are designed to be everything you’ve always wanted in a pair: moisture-wicking, supportive and squatproof. Plus, they come in a ton of pretty heathered colors. “A Kids Book About…” ($15.96; amazon.c...

JANE FRYER: The judo master who made me the fall guy… aged 97!

NewsColony JANE FRYER: The judo master who made me the fall guy… aged 97! Jane Fryer is pictured above with Jack Hearn. ‘See, I’d get you round the neck and press on your Adam’s apple,’ he grins, silver moustache bobbing, white teeth flashing. ‘ And if I carried on with that, you’d be dead in a minute’ There is a startling moment in Jack Hearn’s extremely spick and span kitchen, when I’m standing between his trophy table and the wall and he’s telling me how he could finish me off with his huge, bearlike paws. ‘See, I’d get you round the neck and press on your Adam’s apple,’ he grins, silver moustache bobbing, white teeth flashing. ‘ And if I carried on with that, you’d be dead in a minute.’ We have already had a lively discussion about whether he should, or should not, throw me over one of his surprisingly wide shoulders on to his beautifully vacuumed living room floor. ‘I could throw you, of course I could! But I won’t,’ he says. ‘It’s not fair — you don’t know...

NewsColony

Search This Blog