USA oil imports, exports up last week

USA oil imports, exports up last week

Oil prices dropped on Thursday, weighed down by concerns that US economic recovery is slowing as the coronavirus outbreak lingers, while a renewed wave of COVID-19 cases in Europe have led to reimposed travel restrictions in several countries.

"Concerns about stagnating demand and the return of Libyan exports continue to put pressure on oil prices", said Norbert Rucker from Julius Baer.

Oil prices on Tuesday fell nearly 4% to their lowest in two weeks on worries about the outlook for fuel demand as Europe and the United States grappled with a surge in new coronavirus infections.

The West Texas Intermediate for November delivery gained 13 cents to settle at 39.93 USA dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery increased 5 cents to 41.77 dollars a barrel on the London ICE Futures Exchange. A stronger dollar makes oil less attractive to buyers using other currencies.

The EIA report also showed that total motor gasoline stockpiles and distillate fuel inventories fell by 4.0 million barrels and 3.4 million barrels, respectively, last week.

US crude, gasoline and distillate inventories all fell last week, according to government data on Wednesday.

Still, fuel demand in the US remains subdued as the pandemic limits travel.

The positive price action in crude oil prices appear bolstered after better-than-expected results from the USA docket, where both Q2 GDP figures and the ADP gauge came in above expectations.

On the supply side, the marketplace stays cautious of a resumption of exports from Libya, although it is uncertain how rapidly it can increase volumes.

"That clearly is going to be something the oil market doesn't need right now", Dhar stated.

This Monday, we discussed the recent rebound in the number of USA rigs drilling for oil which increased from 179 to 183.

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