Skip to main content

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
Labels:

Comments

Post a Comment

Popular posts from this blog

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...
Post a Comment
Read more

Disabled people are still vulnerable, even as COVID-19 normalizes their ‘special’ needs

Disabled people are still vulnerable, even as COVID-19 normalizes their ‘special’ needs NewsColony Perhaps it’s appropriate that public notices of the COVID-19 crisis began as an ableist cruelty. Health officials assured the nation that only the elderly and those with chronic health conditions would be seriously affected; most Americans (i.e., the normal people) would have only mild symptoms and be fine. x A friendly reminder: people who will be high-risk patients if we get coronavirus can hear you when you reassure everyone we’re the only ones who might die. — Alexandra Brodsky (@azbrodsky) February 29, 2020 Soon after the announcement of those assurances, the likelihood of high-risk people surviving was further limited by the people more likely to be fine. Shopping frenzies cleared stores of essential supplies needed everyday by many disabled people, like thermometers, hand wipes, masks, and IV infusion supplies. Accustomed to their needs ...
Post a Comment
Read more

Coronavirus UK: BBC makes changes to ‘lift people’s spirits’

Coronavirus UK: BBC makes changes to ‘lift people’s spirits’ NewsColony BBC viewers have been warned that ‘things will look and sound a bit different’ during the coronavirus crisis.  In a blog post on the corporation’s website, BBC News Chief Fran Unsworth outlined a number of changes its newsroom was making in light of the ‘rapidly evolving situation’.   Among the changes, presenters will doing their own make-up, many interviews will be conducted remotely and the BBC will rely more on its network of local reporters, Ms Unsworth explained. TV veterans Mr Motivator and Angela Rippon have also signed up for a new BBC One show to lift people’s spirits during the pandemic. HealthCheck UK Live, with Watchdog’s Michelle Ackerley and CBBC star Dr Xand van Tulleken will air every weekday for two weeks. TV veterans Mr Motivator and Angela Rippon have also signed up for a new BBC One show to lift people’s spirits during the pandemic HealthCheck UK Live, with Wa...
Post a Comment
Read more