Oil prices fall as supply-driven rally peters out

The Inglewood Oil Field on March 9, 2020 in Los Angeles. (AP)

SULAIMANI (ESTA) — Oil prices fell on Wednesday as doubts re-emerged over demand, with coronavirus cases continuing to rise worldwide.

Brent crude was down $1.47 at $77.62 a barrel by 0627 GMT, having fallen nearly $2 on Tuesday after touching $80.75, its highest in nearly three years.

U.S. oil fell $1.44 to $73.85 a barrel, having dropped 0.2% in the previous session.

Oil prices have changing higher as economies recover from pandemic lockdowns and fuel demand pick up, while some producing countries have seen supply disruptions.

Traders expect Organization of the Petroleum Exporting Countries (OPEC) and allies, usually known as OPEC+, will decide to keep supplies tight when they meet next week.

“While the supply backdrop has not changed much, oil prices hitting USD80/bbl would see pressure building for OPEC+ nations to increase their production quota,” Reuters quoted ANZ Research as saying.

Oil demand is expected to rise strongly in the next few years, OPEC forecast on Tuesday, sounding a warning that the world needs to keep investing in production to avert a crunch even as it transitions to less polluting forms of energy.

Previous Article

Iran rejects U.S. demand for U.N. inspectors' access to nuclear site

Next Article

U.S. reached out to China about cutting oil imports from Iran – report  

Related Posts