Oil slides as demand worries re-emerge, U.S. Gulf rigs reopen

17.09.2020 - Petr Mazaylo
Oil slides as demand worries re-emerge, U.S. Gulf rigs reopen

Oil prices slid on Thursday following two straight days of gains. This came after worries about fuel demand were reinforced by reopening production in the U.S. Gulf following Hurricane Sally’s passage.

Brent crude futures dropped 0.8%, or 36 cents, at $41.86 per barrel after rising 4.2% on Wednesday. U.S. West Texas Intermediate crude futures fell 1.1%, or 43 cents, at $39.73 per barrel after a 4.9% gain in the last session.

Prices were weighed by a bigger-than-expected increase in U.S. distillate stocks, including diesel and heating oil, which raised worries about fuel demand in the United States.

Distillate stocks rose by 3.5 million barrels last week, while weekly demand for the fuel dropped by 2.81 million bpd, down 27.2% year-on-year.

Distillate stocks are at their highest levels this time of year since 1991, while U.S. refiners’ margins for producing distillate are at their lowest in 10 years.

U.S. refiners processed 13.5 million bpd of oil in the previous week, down 19.3% year-on-year.

Energy companies are beginning to return crews to offshore U.S. Gulf platforms after Hurricane Sally’s passage. Almost 500,000 bpd of oil output was closed ahead of the storm’s arrival.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.net or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?