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Oil Prices Mixed as Demand Shrinks Due to Coronavirus Travel Bans, Stimulus Hopes Support


Drilling rigs function at sundown in Midland, Texas, US. (Reuters)

West Texas Intermediate (WTI) crude futures slipped Four cents, or 0.2%, to $24.45 as of 0018 GMT, whereas Brent crude futures rose 12 cents, or 0.4%, to $27.51.

  • Reuters
  • Final Up to date: March 26, 2020, 8:13 AM IST

Melbourne: Oil costs have been combined on Thursday following three days of good points, with the prospect of quickly dwindling demand on account of coronavirus journey bans and lockdowns offsetting hopes a US $2 trillion emergency stimulus will shore up financial exercise.

West Texas Intermediate (WTI) crude futures slipped Four cents, or 0.2%, to $24.45 as of 0018 GMT, whereas Brent crude futures rose 12 cents, or 0.4%, to $27.51.

“With lockdowns in lots of international locations, expectations of oil demand contracting by greater than 10 million barrels per day (bpd) are rising. Such demand loss will enhance the availability glut,” Australia and New Zealand Banking Group analysts mentioned in a be aware.

The collapse of a supply-cut pact between the Group of the Petroleum Exporting Nations (OPEC) and different producers led by Russia is about to spice up oil provide, with Saudi Arabia planning to ship greater than 10 million bpd from Might.

“Manufacturing will increase by Saudi Arabia and Russia loom, and issues nonetheless look unsure because of the ongoing worth warfare between these two international locations,” ANZ mentioned.

U.S. crude inventories rose by 1.6 million barrels in the latest week, the U.S. Power Data Administration mentioned on Wednesday, marking the ninth straight week of will increase.

Merchandise equipped, a proxy for U.S. demand, dropped practically 10% to 19.Four million bpd, EIA information confirmed.



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