Oil gains with US stockpiles decline offsetting virus fear

Oil gains with US stockpiles decline offsetting virus fear

Admin 20 hours ago News

Bloomberg

Oil rose for a second day as a bigger-than-expected drop in American crude stockpiles and plunging output from Opec producers outweighed nervousness about a resurgence of coronavirus in the US. Futures held near $40 a barrel in New York after rising 1.4% as the Energy Information Administration (EIA) reported a 7.2 million-barrel decrease in US inventories last week, the biggest decline this year. Sentiment was also aided by a survey showing Opec output fell to the least since 1991 in June, while Russia reached near total compliance with its Opec+ quota. The coronavirus continues to run rampant through the world's largest economy, with cases surging in California, Texas and Florida, the three most populous states. Many areas have now paused or reversed re-opening measures, weighing on energy demand. Oil traded in a narrow range around $40 this week as supply cuts from Opec+ and elsewhere are balanced by demand that's still well below pre-virus levels and at risk of regressing. Indian consumption of petroleum products is at 88% of year-ago levels, the country's oil ministry said. "The market has calmed down and for now has adopted a wait-and-see approach,“ said Ole Sloth Hansen, head of commodity