Oil prices bounce back from 3-week lows, but economic headwinds loom

Oil prices bounce back from 3-week lows, but economic headwinds loom

The survey of 43 analysts and economists forecast benchmark Brent crude LCOc1 to average $41.50 a barrel in 2020, up slightly from the $40.41 consensus in last month's survey and compared with around $42 average for the benchmark thus far this year.

Oil prices edged up on Wednesday after a steep drop in US crude inventories, but another record day for COVID-19 cases worldwide kept gains in check.

The balance between positive longer-term sentiment and near-term negatives (increasing coronavirus infections, rising OPEC+ and U.S. onshore production) has kept oil in a relatively tight range in recent weeks and on an upward trend for three consecutive months. "Concerns appear to be developing that a rise in OPEC+ production will coincide with an uneven recovery in oil demand". While US shale production is expected to drop in August to about 7.49 million bpd, the lowest in two years, analysts warn that shale producers may start increasing output as crude prices climb higher.

West Texas Intermediate for September delivery fell 15 cents to $40.12 a barrel on the New York Mercantile Exchange at 8:21 a.m. Sydney time.

"Adding to matters is that the USA consumer market is entering the last few weeks of peak driving season and with mobility tracking data flatlining", Stephen Innes, chief global market strategist at AxiCorp, said in a report.

Four U.S. states reported one-day records for coronavirus deaths on Tuesday and cases in Texas passed the 400,000 mark.

Amid slow recovery of fuel demand due to the resurgence of the virus, investors are also anxious about oversupply, as the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, will ease oil supply curbs from August. Among the severely affected segments of the global market, the oil market recorded a significant dip in the prices on Thursday.

Rising coronavirus cases globally revive concerns over demand outlook.

NY Harbor Ulsd +4 usd/mton. The sharp and significant surge in the coronavirus cases is contributing to the decrease in demands for crude oil as the transportation industry is majorly hit disproportionately. - Don't create bunker prices from current Oil Futures, due to too short trading period, also live and changing values every split second.

Related Articles

  • U.S.  stocks gain amid solid tech earnings

    U.S. stocks gain amid solid tech earnings

    An earlier report showed that Germany's economy, Europe's largest, suffered through its worst quarter on record during the spring. ET, the S&P 500 was up 4.72 points, or 0.15%, at 3,250.94, and the Nasdaq Composite was up 91.00 points, or 0.86%, at 10,678.81.
    NASA Perseverance Mars rover healthy, exits 'safe mode'

    NASA Perseverance Mars rover healthy, exits 'safe mode'

    Landing is a tense process, but if all goes well, Perseverance will join Curiosity as NASA's only functioning rovers on Mars. Mars 2020 sent its first signal to ground controllers via NASA's Deep Space Network at 915 am EDT (615 am PDT).
    Buddy, first dog in US with COVID-19, dies in Staten Island

    Buddy, first dog in US with COVID-19, dies in Staten Island

    The increase of 10,000 COVID-19 deaths in 11 days is the fastest in the United States since early June. More than 150,000 people in the USA have died from the virus, according to Johns Hopkins.
  • F1 Is Cancelled, So Drivers Will Race In The Video Game Instead

    F1 Is Cancelled, So Drivers Will Race In The Video Game Instead

    What F1 races have been called off? At the time of publishing, there have been 292,142 cases and 12,784 deaths confirmed globally. Sporting events around the world have been cancelled due to the ongoing Covid-19 crisis.

    COVID-19 Coles County Case Count Updates: July 31st, 2020

    COVID-19 is widely spread within Coles County so protect yourself as if anyone you come in contact is a potential exposure. The state health department reported increases in deaths related to covid-19 in only nine counties Saturday.

    COVID-19: Health officials announce 50 new cases, one new death

    British Columbia reported a troubling spike in new coronavirus cases Friday, as the province gears up for the B.C. The province also announced one new health-care outbreak Friday, at the Dania Home in the Fraser Health region.
  • How Lewis Hamilton three-wheeled it to F1 British GP victory

    How Lewis Hamilton three-wheeled it to F1 British GP victory

    Hamilton is now on 88 points in the overall standings, with Finland's Bottas on 58. Hamilton said: "Up until the last lap, everything was relatively smooth sailing".

    "Wrong!" Trump Whines Over Fauci Testimony On COVID Surge

    Students need to return to the classroom so their parents can return to work, he has said, putting him at odds with public health officials.
    New UW Huskies, WSU Cougars 2020 football schedules released

    New UW Huskies, WSU Cougars 2020 football schedules released

    Allowing specifically USC and UCLA , two Pac-12 cornerstones, to begin August 17 doesn't seem feasible at the moment. WSU plays 10 of the 12 teams from its original fall schedule, but the revised version adds a 10th game at USC .
  • Over 4K new COVID-19 cases reported by FDOH on Monday

    Over 4K new COVID-19 cases reported by FDOH on Monday

    According to the Centers for Disease Control, Florida and Texas now make up nine out of ten coronavirus hot spots in the U.S. Another 78 Manatee County residents have tested positive for COVID-19, according to the Florida Department of Health .
    Mark Meadows says 2020 election will happen on November 3

    Mark Meadows says 2020 election will happen on November 3

    In an election as close as 2016′s, a delayed tally in key states could keep news organisations from calling a victor . Trump has compared mail-in ballots to foreign interference.
    James Murdoch resigns from news publisher News Corp's board

    James Murdoch resigns from news publisher News Corp's board

    James, who has publicly said there are " views I really disagree with on Fox ", abandoned the company previous year . James Murdoch, 47, has recently been critical of his father's business and its media coverage.