Oil prices decline after rise in US stock

For the third day in a row, oil prices declined with the opening of Asian markets, but they rose later in the past two days. Will this happen today as well?

Oil prices fell by about 2% Wednesday morning, where Brent crude fell by 63 cents to $ 40.50 a barrel, and West Texas crude fell by 72 cents to $ 37.66 a barrel at 9:15 am Singapore time.

The decline came after the weekly American Oil Institute report released that showed that commercial crude oil stocks increased by 3.857 million barrels, gasoline stocks increased by 4.267 million barrels, and distillate stocks, which include diesel and heating fuel, by 919 thousand barrels. The market anxiety comes from the high levels of gasoline stocks because it reflects the extent of the economic recovery and the growth of demand for oil derivatives. Some fear that the second wave of the Krone pandemic may force people to stay in their homes, thereby reducing demand for oil.

The positive side of the data is that Cushing stocks in Oklahoma continued to decline, dropping by 3.289 million barrels last week. They are stocks that some have predicted will fill and return negative prices again, but now we see these expectations fail.

The Energy Information Administration will publish inventory data on Wednesday morning in the United States, and accordingly the price path will be decided for the rest of the day.

SOURCE: attaqa.net