Friday 11 September 2020

Global Crude Oil News and Analysis for WTI, Brent Prices on September 11, 2020 - Bloomberg

Global Crude Oil News and Analysis for WTI, Brent Prices on September 11, 2020 - Bloomberg:

Oil headed for its first back-to-back weekly losses since April’s price rout as swelling U.S. stockpiles added to signs that the global energy demand recovery will take longer than previously anticipated.

Futures in New York were steady near $37 a barrel and are down around 6% this week. U.S. crude inventories rose for the first time in seven weeks and stockpiles at the storage hub at Cushing reached the highest since May, according to Energy Information Administration data. Drops in gasoline and distillate supplies provided some grounds for optimism, however.

The U.S. crude benchmark has fallen around 13% this month as the end of the U.S. summer driving season, a stalling Asian demand recovery and evidence the virus is making a comeback in Europe all weighed on sentiment. A retreat in global stocks has also put more downward pressure on energy markets.


The demand outlook is weakening as the OPEC+ alliance gradually adds more barrels to the market, leading to widening contangoes and the possible return of floating-storage plays. Saudi Aramco slashed oil prices to Asia at the start of the week, while S&P Global Platts became the latest market forecaster to chime in with a gloomy prediction, saying oil consumption is unlikely to get back to 2019 levels before 2022.

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