Oil rises amid bleak outlook as Corona infections rise and supplies grow

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Prices went up Oil Today, Tuesday, after recent severe losses, market sentiment remains weak, as the high number of COVID-19 cases is hurting the outlook for fuel demand while supplies rise.

Brent crude rose 42 cents, or 1 percent, to $ 40.88 a barrel. And he won Rough The US dollar was 37 cents, or the equivalent of one percent, to $ 38.93 a barrel. The two benchmarks fell more than 3 percent on Monday.

The lack of progress on agreeing on a package to mitigate the repercussions of the Coronavirus in the United States was added to the gloomy atmosphere in market– Although Nancy Pelosi, Speaker of the US House of Representatives, said on Monday that she hopes that an agreement can be reached before the presidential elections on the third of November.

A wave of coronavirus infections is sweeping across the United States, Russia, France and many other countries, undermining global economic prospects, with record numbers of new cases forcing some countries to impose new restrictions as winter approaches.

“We believe demand from now on will really struggle to grow. The COVID-19 restrictions are all part of that,” said Vivek Dahar, commodities analyst at the Commonwealth Bank of Australia.

The bank expects US oil to average $ 38 and Brent to $ 41 in the fourth quarter of this year.

Prices received some support from a possible drop in US production as oil companies began closing offshore platforms as a hurricane approached the Gulf of Mexico.

Saudi Energy Minister Prince Abdulaziz bin Salman said on Monday that the worst was over for the crude market.

But his remarks contradicted earlier comments made by the Secretary-General of OPEC, who said that any recovery of the oil market may take longer than he hopes, with the increase in Corona virus infections around the world.

The National Oil Corporation of Libya said on Friday that the country’s production is expected to reach 1 million barrels per day in the coming weeks, in a faster return than many analysts had expected, hampering OPEC’s efforts to restrict production.

(Reuters)

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