Oil futures fell to their lowest levels since June, unable to address concerns about crude demand due to continued growth in coronovirus cases, the end of the US summer holiday driving season, and a report that Saudi Arabia was due in October Is planning to cut its oil prices.
US Benchmark for October Delivery CL.1, West Texas Intermediate Crude
On the New York Mercantile Exchange, it fell $ 3.01, or 7.6%, to $ 36.76 a barrel. November Brent Crude BRN.1,
The global benchmark, with a decline of $ 2.13 or 5.1%, was at $ 39.88 a barrel in ICE Futures Europe, after falling 1.5% on Monday, when US markets were closed for Labor Day.
The pressure was put on Monday after Saudi Arabia reduced the official selling price for Asian buyers, analysts said, which was taken as a sign of weak demand.
Market sources said a cut of $ 1 to $ 2 per barrel was expected for Asia-based crude, market sources told S&P Global Platts in the last week of August.
Major concern for the market remains demand, and with China’s resumption in the first months, large-scale fresh sugar purchases seem to be absent from the market at this time, ”said Warren, global head of commodities at ING. Patterson said.
After record volumes in June, customs data showed Chinese crude imports in August averaged 11.23 million barrels per day, down from 12.13 million barrels in July, and below the record 12.99 million barrels seen in June, he said over a year. More-now basis, imports remain up to 13%
The fall in oil prices also comes as the US driving season expires between Memorial Day and Labor Day, pointing to seasonal weakness in gasoline demand.
Despite the headline news of Saudis’s oil price cuts and low demand concerns caused by the epidemic, Daniel Flynn, a market analyst at Price Futures Group, said he believed the market had “already low demand and Has recovered from the market. Going negative a few months ago. ”
So if “states continue to reopen, we should look at businesses and demand to rise to the level expected before this nightmare,” he said in a daily report.
October gasoline RBV20, at Nymex
October heating oil HOV20, down 6.1% to $ 1.1047 a gallon
Fell 6.9% to $ 1.0718 per gallon.
October natural-gas futures NGV20,
British thermal units per million were off 2.9% at $ 2.512.