Energy Market: Oil Demand Recovers, Prices Trapped In Narrow Band

SourceAl Bawaba
SectorOil & Gas
CountryMiddle east

Oil demand is improving, but the uneven pace of the rebound has created challenges Brent crude declined to $41.02 per barrel last week as WTI also retreated to $38.49 per barrel. Both grades were down by about a dollar. On a monthly basis, Brent has been moving in a narrow range between $38 and $42 per barrel since the end of May. This is a healthy sign both for the oil market and the wider global economy, especially given the upheaval caused by the pandemic and the recent pickup in cases across some major economies. The slight drop in oil prices might be explained by the record spike in COVID-19 cases and the increase in global oil inventories. The huge glut remained in oil and refined petroleum product inventories onshore and offshore in idled tankers,...read more...

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