Resurgence of COVID-19 infections weighs Oil down for third day, U.S. stockpiles

Thursday saw Oil prices fall following a slump in the previous session with U.S. stockpiles rising adding to worries that this would hit demand from the surge of COVID-19 cases within Asia and potentially, U.S. rate hikes.

Brent crude is hit with its decline by 0.1% (6 cents), now priced at $66.60 per barrel (0141 GMT). On Wednesday, it fell by 3%. Meanwhile, U.S Oil had also fallen by 0.1%, bringing it down to $63.29 per barrel, following a drop of 3.3% from a prior session.

With the resurgence of Coronavirus cases within Asian regions, the market near term had not been supported effectvely. An estimate of 2/3 of the Indian population had been reported to have been exposed to the virus; the death toll is pegged at a record high of 4,529.

The price declines this week had been enervated on Wednesday when reports had been made public that the United States and Iran have reached certain agreements on Tehran’s nuclear programme that may lift sanctions and bring more supplies to the market. However, these had been deemed premature in a later reportage as it had stipulated that more time was neeeded to reach a holistic agreement.

The possible raising of rates by the Federal Reserve had been speculated, with such being consequential to economic outlook and an impetus for investors to reduce their exposure to oil alongside other commodities.

The same could be said of Rising U.S. stockpiles of crude. Only, the gains had fallen below expectations within the week.

The inventories for Crude had increased by 1.3 million barrels the week prior which went against the forecast of analysts.