🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Stocks

Oil Down With COVID-19 Continuing to Dampen Demand

Published 07/08/2020, 11:49 PM
Updated 07/08/2020, 11:53 PM
© Reuters.
LCO
-
CL
-
NABZY
-

By Bryan Wong

Investing.com- Oil was down on Thursday morning in Asia, with ever-increasing numbers of COVID-19 cases continuing to hinder investor confidence in the global economic recovery.

Brent oil futures dropped 0.12% to $43.23 by 11:51 PM ET (4:51 AM GMT) while WTI futures slid 0.20% to $40.82.

“The market is struggling to get strong conviction to the upside at the current point in time,” Lachlan Shaw, head of commodity research at National Australia Bank (OTC:NABZY) told Reuters.

“There’s mixed evidence on demand.”

The U.S. Energy Information Administration (EIA) recorded a 5.654-million-barrel surplus, considerably more than the 3.114-million-barrel draw forecasted. The surprise build prompted OPEC+ to press on over-producers such as Iraq and Nigeria, to improve their compliance with supply curbs.

Globally, the pandemic continues to hinder oil demand from some of the biggest oil consumers. The number of cases in the U.S. surpassed 3 million as of July 9. India also saw its biggest single-day spike on Wednesday, with over 25,000 new cases, according to Johns Hopkins University data.

There is also new evidence suggesting the possibility of the COVID-19 pandemic taking a turn for the worse. The World Health Organization (WHO) has acknowledged the possibility of airborne transmission of the COVID-19 virus. This could mean that the virus could create a new wave of infections that is far more difficult to control.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.