European countries re-impose curfews and general isolation measures in light of the increase in new cases of Corona. India, which is on track to overtaking the United States with the world’s largest cases of COVID-19, is preparing for an increase in infections in the coming weeks as a major holiday season approaches. India is the third largest consumer of crude in the world.
Brent crude futures were down 28 cents, or 0.7%, to $ 43.04 a barrel by 0724 GMT, while US West Texas Intermediate crude futures fell 24 cents, or 0.6%, to $ 40.80.
Yesterday, Wednesday, the International Energy Agency said that a second wave of infections with the Coronavirus may impede producers’ efforts to achieve a balance in the market.
Brent rose 0.4% and WTI 0.6% earlier, extending the gains they made in Wednesday’s session, after data showed that US crude stocks fell last week.
The American Petroleum Institute said that stocks of crude, gasoline and distillates declined in the week ending October 9, according to a report issued after the market closed yesterday.
The US Energy Information Administration is due to release its weekly data on Thursday, a day later than the normal schedule after a public holiday.
Reuters quoted two OPEC + sources, before a meeting of the group’s technical committee on Thursday to review the situation in the oil market, that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, the bloc known as OPEC +, recorded a compliance rate of 102% with their agreement to reduce oil supplies in September.
On Wednesday, the CEO of Occidental Petroleum said during the Energy Intelligence Forum that the company expects to restore the balance between global oil supply and demand by the end of 2021.
Vicky Hollub said that US crude oil production will increase modestly next year.
Demand and oil prices have collapsed this year due to the oversupply that befell the market prior to the outbreak of the Covid-19 pandemic around the world.