Oil edges higher, even as U.S. inventory rise revives glut worries - Reuters:
Oil rebounded from earlier losses on Wednesday, even as U.S. data showed crude inventories rose to a record high, reviving worries of a persistent glut due to weak demand.
Crude stocks rose by 5.7 million barrels in the week to June 5 to 538.1 million barrels, according to a U.S. Energy Information Administration report.
Product demand rose, however, though it remains far below levels at this time last year. Distillate inventories were higher, but the increase was smaller than in prior weeks.
“We are seeing support in the market coming from products and not crude,” said Andrew Lipow, president of Lipow Oil Associates in Houston.
Brent crude settled up 55 cents to $41.73 a barrel. U.S. West Texas Intermediate (WTI) rose 66 cents to $39.60 after falling more than 2% in the session.
Wednesday, 10 June 2020
Why Are Expats Leaving #Dubai? - Bloomberg
Why Are Expats Leaving Dubai? - Bloomberg:
Millions of foreigners across the Gulf are having to weigh whether to stay or go home as the fallout from the pandemic forces economic adjustments. The impact is starkest in Dubai whose economic model is built on the presence of foreign residents who comprise about 90% of the population. One study estimates that the U.A.E. could lose 900,000 jobs. Bloomberg’s Zainab Fattah reports on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Millions of foreigners across the Gulf are having to weigh whether to stay or go home as the fallout from the pandemic forces economic adjustments. The impact is starkest in Dubai whose economic model is built on the presence of foreign residents who comprise about 90% of the population. One study estimates that the U.A.E. could lose 900,000 jobs. Bloomberg’s Zainab Fattah reports on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
MIDEAST STOCKS-Egypt hit by blue-chip sell-off; Gulf trade calm | Nasdaq
MIDEAST STOCKS-Egypt hit by blue-chip sell-off; Gulf trade calm | Nasdaq:
The Egyptian stock market ended lower on Wednesday, pulled down by its blue-chip shares, while trade on major bourses in the Gulf was uneventful.
Egypt's blue-chip index .EGX30 declined 1.1%, pressured by a 1.8% fall in Commercial International Bank COMI.CA and a 3.4% drop in tobacco monopoly Eastern Company EAST.CA.
Stock exchange data showed foreign investors were net-sellers of Egyptian stocks.
In Qatar, the index .QSI dropped 0.8%, with petrochemical company Industries Qatar IQCD.QA dropping 1.6% and Qatar Islamic Bank QISB.QA declining 1.3%.
The Gulf state will begin lifting coronavirus lockdown restrictions under a four-phase plan starting on June 15, when some mosques can reopen and flights can depart, government spokeswoman Lulwa Rashed al-Khater said on Monday.
The Egyptian stock market ended lower on Wednesday, pulled down by its blue-chip shares, while trade on major bourses in the Gulf was uneventful.
Egypt's blue-chip index .EGX30 declined 1.1%, pressured by a 1.8% fall in Commercial International Bank COMI.CA and a 3.4% drop in tobacco monopoly Eastern Company EAST.CA.
Stock exchange data showed foreign investors were net-sellers of Egyptian stocks.
In Qatar, the index .QSI dropped 0.8%, with petrochemical company Industries Qatar IQCD.QA dropping 1.6% and Qatar Islamic Bank QISB.QA declining 1.3%.
The Gulf state will begin lifting coronavirus lockdown restrictions under a four-phase plan starting on June 15, when some mosques can reopen and flights can depart, government spokeswoman Lulwa Rashed al-Khater said on Monday.
#UAE economy to contract by 3.6% this year, central bank says - Reuters
UAE economy to contract by 3.6% this year, central bank says - Reuters:
The United Arab Emirates (UAE) economy is likely to contract by 3.6% this year after economic activity slowed because of the coronavirus pandemic, the central bank said on Wednesday.
In the first quarter of this year, the UAE economy shrank by 1% year on year, with non-oil gross domestic product down by 3%, as opposed to hydrocarbon GDP, which rose by 3.7% year on year.
“As the drop in economic activity is expected to be followed by sharp contractions in the subsequent quarters, non-energy growth contraction is projected at (minus)-4.1% for 2020,” the central bank said in a first-quarter report.
Hydrocarbon GDP is expected to shrink 2.4% this year, it said.
The United Arab Emirates (UAE) economy is likely to contract by 3.6% this year after economic activity slowed because of the coronavirus pandemic, the central bank said on Wednesday.
In the first quarter of this year, the UAE economy shrank by 1% year on year, with non-oil gross domestic product down by 3%, as opposed to hydrocarbon GDP, which rose by 3.7% year on year.
“As the drop in economic activity is expected to be followed by sharp contractions in the subsequent quarters, non-energy growth contraction is projected at (minus)-4.1% for 2020,” the central bank said in a first-quarter report.
Hydrocarbon GDP is expected to shrink 2.4% this year, it said.
#Qatar energy minister weighs in on Saudi oil price war | Qatar News | Al Jazeera
Qatar energy minister weighs in on Saudi oil price war | Qatar News | Al Jazeera:
Qatar's Minister of State for Energy Affairs said Saudi Arabia made a big miscalculation when it launched an oil price war with Russia earlier this year, flooding an already saturated global market that was reeling from falling crude demand in the wake of coronavirus lockdowns.
"It was sort of a double-whammy where the market got hit in a very big way," Saad al-Kaabi, who is also CEO of Qatar Petroleum, told business news network CNBC on Monday.
"I think it was a very big mistake to flood the market," he added. "Flooding the market is what caused us to go to a very low level. And then the pandemic basically took it almost to a very dangerous area where people could not afford to produce any more."
In March, Riyadh announced it was lowering the price it charges for oil and would start pumping crude with abandon after it failed to convince Russia to agree to steep output cuts to offset a 30 million barrel a day blow to demand from the coronavirus pandemic.
Qatar's Minister of State for Energy Affairs said Saudi Arabia made a big miscalculation when it launched an oil price war with Russia earlier this year, flooding an already saturated global market that was reeling from falling crude demand in the wake of coronavirus lockdowns.
"It was sort of a double-whammy where the market got hit in a very big way," Saad al-Kaabi, who is also CEO of Qatar Petroleum, told business news network CNBC on Monday.
"I think it was a very big mistake to flood the market," he added. "Flooding the market is what caused us to go to a very low level. And then the pandemic basically took it almost to a very dangerous area where people could not afford to produce any more."
In March, Riyadh announced it was lowering the price it charges for oil and would start pumping crude with abandon after it failed to convince Russia to agree to steep output cuts to offset a 30 million barrel a day blow to demand from the coronavirus pandemic.
Oil falls towards $40 as U.S. inventory rise revives glut worries - Reuters
Oil falls towards $40 as U.S. inventory rise revives glut worries - Reuters:
Oil fell more than 2% towards $40 a barrel on Wednesday after a report showed a rise in crude inventories in the United States, reviving concerns about oversupply and weak demand because of the coronavirus crisis.
The report from the American Petroleum Institute, an industry group, said crude stocks rose by 8.4 million barrels, rather than falling as analysts forecast. [API/S] The U.S. government’s official stocks figures are due out later on Wednesday. [EIA/S]
“Indications from the American Petroleum Institute show that stocks built quite a lot,” said Bjornar Tonhaugen of Rystad Energy. “What else can you do as a trader but rush to sell?”
Brent crude LCOc1 was down 70 cents, or 1.7%, to $40.48 a barrel at 1210 GMT. U.S. West Texas Intermediate (WTI) CLc1 dropped 84 cents, or 2.2%, to $38.10.
Oil fell more than 2% towards $40 a barrel on Wednesday after a report showed a rise in crude inventories in the United States, reviving concerns about oversupply and weak demand because of the coronavirus crisis.
The report from the American Petroleum Institute, an industry group, said crude stocks rose by 8.4 million barrels, rather than falling as analysts forecast. [API/S] The U.S. government’s official stocks figures are due out later on Wednesday. [EIA/S]
“Indications from the American Petroleum Institute show that stocks built quite a lot,” said Bjornar Tonhaugen of Rystad Energy. “What else can you do as a trader but rush to sell?”
Brent crude LCOc1 was down 70 cents, or 1.7%, to $40.48 a barrel at 1210 GMT. U.S. West Texas Intermediate (WTI) CLc1 dropped 84 cents, or 2.2%, to $38.10.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar close
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
#Kuwait Petroleum Corporation to ban employment of expats - Arabianbusiness
Kuwait Petroleum Corporation to ban employment of expats - Arabianbusiness:
Kuwait Petroleum Corporation (KPC) and its subsidiary companies are to stop employing expatriates.
The announcement was made by Minister of Oil, Acting Minister of Electricity and Water Dr. Khaled Al-Fadhel, during a parliamentary committee session on Wednesday, according to a report by state news agency KUNA.
Al-Fadhel said non-Kuwaitis would not be hired for the remainder of 2020 and 2021, and the number of special contracts for foreign workers would be cut.
Kuwait Petroleum Corporation (KPC) and its subsidiary companies are to stop employing expatriates.
The announcement was made by Minister of Oil, Acting Minister of Electricity and Water Dr. Khaled Al-Fadhel, during a parliamentary committee session on Wednesday, according to a report by state news agency KUNA.
Al-Fadhel said non-Kuwaitis would not be hired for the remainder of 2020 and 2021, and the number of special contracts for foreign workers would be cut.
#Dubai Islamic Bank closes $1bn sukuk - Arabianbusiness
Dubai Islamic Bank closes $1bn sukuk - Arabianbusiness:
Dubai Islamic Bank (DIB) has successfully closed a $1 billion five-year sukuk, with a profit rate of 2.95 percent per annum, the equivalent to 245 basis points (bps) over the equivalent tenor Mid Swap Rate.
It marks the first public benchmark sukuk from a regional financial institution after the Covid-19 pandemic market disruption.
The sukuk attracted more than 170 high-quality investors, with the order book rising to over $4.5bn and nearly 50 percent coming from outside the MENA region.
Dubai Islamic Bank (DIB) has successfully closed a $1 billion five-year sukuk, with a profit rate of 2.95 percent per annum, the equivalent to 245 basis points (bps) over the equivalent tenor Mid Swap Rate.
It marks the first public benchmark sukuk from a regional financial institution after the Covid-19 pandemic market disruption.
The sukuk attracted more than 170 high-quality investors, with the order book rising to over $4.5bn and nearly 50 percent coming from outside the MENA region.
#Sharjah Islamic Bank hires banks for dollar sukuk - sources - Reuters
Sharjah Islamic Bank hires banks for dollar sukuk - sources - Reuters:
Sharjah Islamic Bank has hired banks to arrange the sale of benchmark dollar sukuk, three sources with knowledge of the matter told Reuters.
The sukuk issuance was likely to be soon, two of the sources said on Wednesday, adding that the banks appointed were Sharjah Islamic Bank’s relationship lenders.
The size was likely be $500 million, but this could be more if demand is strong, one of the sources said.
Sharjah Islamic Bank has hired banks to arrange the sale of benchmark dollar sukuk, three sources with knowledge of the matter told Reuters.
The sukuk issuance was likely to be soon, two of the sources said on Wednesday, adding that the banks appointed were Sharjah Islamic Bank’s relationship lenders.
The size was likely be $500 million, but this could be more if demand is strong, one of the sources said.
#Dubai merger boosts state-linked property firm's debt - sources - Reuters
Dubai merger boosts state-linked property firm's debt - sources - Reuters:
Islamic bonds issued by Dubai’s Meraas Holding, a state-linked property developer, have shot up in value after the government announced the company would come under the umbrella of the ruler of Dubai’s investment vehicle Dubai Holding.
The bonds, or sukuk, jumped on Tuesday - when the incorporation into Dubai Holding was announced - to close at 92 cents on the dollar from 84.2 cents the previous day, and were at around 94 cents on Wednesday, two market sources said.
The sukuk, which have seen some volatility over the past year and a half, fell sharply in value in March as the coronavirus pandemic and a slump in oil prices hit an already struggling real estate sector in Dubai.
But market sources said the risk of a potential default on the debt would decrease after the change in ownership.
Islamic bonds issued by Dubai’s Meraas Holding, a state-linked property developer, have shot up in value after the government announced the company would come under the umbrella of the ruler of Dubai’s investment vehicle Dubai Holding.
The bonds, or sukuk, jumped on Tuesday - when the incorporation into Dubai Holding was announced - to close at 92 cents on the dollar from 84.2 cents the previous day, and were at around 94 cents on Wednesday, two market sources said.
The sukuk, which have seen some volatility over the past year and a half, fell sharply in value in March as the coronavirus pandemic and a slump in oil prices hit an already struggling real estate sector in Dubai.
But market sources said the risk of a potential default on the debt would decrease after the change in ownership.
Worst is over, but Middle East airlines' losses to top $4.8bln in 2020 | ZAWYA MENA Edition
Worst is over, but Middle East airlines' losses to top $4.8bln in 2020 | ZAWYA MENA Edition:
The worst of the collapse in air travel could be over, but airlines in the UAE and the rest of the Middle East region are expected to end the year with a serious cash burn, according to the International Air Transport Association (IATA).
The region’s carriers, which are now attempting to kick start passenger services, will lose $4.8 billion this year, the air transport body said. The recovery for long-haul operators will also be delayed, while lower oil prices will exacerbate the downturn in the region.
“This year, we’re expecting to see widespread losses across all regions,” Brian Pearce, chief economist at IATA, said during a media briefing.
IATA’s latest forecast is based on the assumption that there will be no second wave of coronavirus and that the pandemic will be steadily contained.
The worst of the collapse in air travel could be over, but airlines in the UAE and the rest of the Middle East region are expected to end the year with a serious cash burn, according to the International Air Transport Association (IATA).
The region’s carriers, which are now attempting to kick start passenger services, will lose $4.8 billion this year, the air transport body said. The recovery for long-haul operators will also be delayed, while lower oil prices will exacerbate the downturn in the region.
“This year, we’re expecting to see widespread losses across all regions,” Brian Pearce, chief economist at IATA, said during a media briefing.
IATA’s latest forecast is based on the assumption that there will be no second wave of coronavirus and that the pandemic will be steadily contained.
Covid-19 Economies: #UAE Sees More Pain Before Recovery in 4Q - Bloomberg
Covid-19 Economies: UAE Sees More Pain Before Recovery in 4Q - Bloomberg:
The United Arab Emirates expects its non-oil economy to contract 4.1% this year due to the coronavirus pandemic, with a sharper slowdown in the second quarter before a gradual recovery through the rest of the year, the central bank said Wednesday.
Actual performance will depend on government support measures and the successful containment of the virus, it said.
Forecasts for 2020:
The United Arab Emirates expects its non-oil economy to contract 4.1% this year due to the coronavirus pandemic, with a sharper slowdown in the second quarter before a gradual recovery through the rest of the year, the central bank said Wednesday.
Actual performance will depend on government support measures and the successful containment of the virus, it said.
Forecasts for 2020:
- Fiscal growth will average about 28%, corresponding to the projected stimulus to counter Covid-19.
- Credit expansion to slow in the second quarter, followed by a gradual recovery.
- Property prices seen declining with a sharper drop in the second and third quarters, before moderating in the last quarter.
- A drop in employment is expected in the second and third quarters, with a recovery in the fourth.
- Economic sentiment may drop further but is likely to moderate with the projected recovery in the last quarter, reflecting improving sentiment and preparation for the Dubai Expo in 2021.
- Foreign investment is also assumed to fall, from 8% growth between 2017 and 2018, due to deterioration in sentiment.
#Dubai Jobs: Expats Leave, Raising Concern of Economic Fallout - Bloomberg
Dubai Jobs: Expats Leave, Raising Concern of Economic Fallout - Bloomberg:
It took Sarah Sissons less than a month to call an end to 25 years in Dubai. The 39-year-old moved back to Australia in May with her husband and daughter. She first came to the Gulf business hub as a teenager, when her father was a pilot for Emirates, and never really left.
“Dubai is home for me,” said Sissons, who owned a small cafe and worked as a freelance human resources consultant. But “it’s expensive here and there’s no safety for expats. If I take the same money to Australia and we run out of everything, at least we’ll have medical insurance and free schooling.”
It’s a choice facing millions of foreigners across the Gulf as the fallout from the pandemic and a plunge in energy prices forces economic adjustments. Wealthy Gulf Arab monarchies have, for decades, depended on foreign workers to transform sleepy villages into cosmopolitan cities. Many grew up or raised families here, but with no formal route to citizenship or permanent residency and no benefits to bridge the hard times, it’s a precarious existence.
The impact is starkest in Dubai, whose economic model is built on the presence of foreign residents who comprise about 90% of the population.
It took Sarah Sissons less than a month to call an end to 25 years in Dubai. The 39-year-old moved back to Australia in May with her husband and daughter. She first came to the Gulf business hub as a teenager, when her father was a pilot for Emirates, and never really left.
“Dubai is home for me,” said Sissons, who owned a small cafe and worked as a freelance human resources consultant. But “it’s expensive here and there’s no safety for expats. If I take the same money to Australia and we run out of everything, at least we’ll have medical insurance and free schooling.”
It’s a choice facing millions of foreigners across the Gulf as the fallout from the pandemic and a plunge in energy prices forces economic adjustments. Wealthy Gulf Arab monarchies have, for decades, depended on foreign workers to transform sleepy villages into cosmopolitan cities. Many grew up or raised families here, but with no formal route to citizenship or permanent residency and no benefits to bridge the hard times, it’s a precarious existence.
The impact is starkest in Dubai, whose economic model is built on the presence of foreign residents who comprise about 90% of the population.
Virus slows #Dubai airport, world's busiest for global travel
Virus slows Dubai airport, world's busiest for global travel:
Perhaps nowhere is the world’s lack of flights due to the coronavirus pandemic more clearly felt than at Dubai International Airport, for years the world’s busiest for international travel.
Its Terminal 3, which sees tens of millions pass through it each year, stood empty and quiet on Wednesday, the once-full departure board showing only seven flights for the sheikhdom’s long-haul carrier Emirates.
Its cavernous walkways, typically chilled to near-Arctic levels — even with being on the Arabian Peninsula — felt warm and humid in parts as air conditioners worked at a slower pace. No water rushed down its fountains and some stores and restaurants stood closed.
It is tough times for Dubai, which through Emirates succeeded in building a major tourist and shopping destination in this one-time pearl-diving village. Emirates has been laying off staff, including in large groups this week. The carrier did not offer figures for how the layoffs affected its staffing.
Perhaps nowhere is the world’s lack of flights due to the coronavirus pandemic more clearly felt than at Dubai International Airport, for years the world’s busiest for international travel.
Its Terminal 3, which sees tens of millions pass through it each year, stood empty and quiet on Wednesday, the once-full departure board showing only seven flights for the sheikhdom’s long-haul carrier Emirates.
Its cavernous walkways, typically chilled to near-Arctic levels — even with being on the Arabian Peninsula — felt warm and humid in parts as air conditioners worked at a slower pace. No water rushed down its fountains and some stores and restaurants stood closed.
It is tough times for Dubai, which through Emirates succeeded in building a major tourist and shopping destination in this one-time pearl-diving village. Emirates has been laying off staff, including in large groups this week. The carrier did not offer figures for how the layoffs affected its staffing.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar mid-session
European, Middle Eastern & African Stocks - Bloomberg: 
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
MIDEAST STOCKS- #Saudi eases; other Gulf markets mixed - Reuters
MIDEAST STOCKS-Saudi eases; other Gulf markets mixed - Reuters:
Major Gulf stock markets were mixed in early trade on Wednesday as banking shares weighed on the Saudi index, while property shares supported the Dubai index.
The benchmark index of Saudi Arabia, which has reported the highest number of new coronavirus infections in the six countries of the Gulf Cooperation Council (GCC), slipped 0.3%. Al Rajhi Bank dropped 0.3%, while National Commercial Bank, the kingdom’s largest lender, was down 0.5%.
However, Saudi Arabian Mining Company rose 0.9%. On Tuesday, Saudi Arabia’s cabinet approved a new mining law that facilitates investor access to financing and supports exploration and geological survey activities, state news agency SPA said, quoting the minister of mining and industry, Bandar Alkhorayef.
In Dubai, the index rose 0.6%, with Emaar Properties rising 2.5% and Emirates Integrated Telecommunications up 1.6%.
Major Gulf stock markets were mixed in early trade on Wednesday as banking shares weighed on the Saudi index, while property shares supported the Dubai index.
The benchmark index of Saudi Arabia, which has reported the highest number of new coronavirus infections in the six countries of the Gulf Cooperation Council (GCC), slipped 0.3%. Al Rajhi Bank dropped 0.3%, while National Commercial Bank, the kingdom’s largest lender, was down 0.5%.
However, Saudi Arabian Mining Company rose 0.9%. On Tuesday, Saudi Arabia’s cabinet approved a new mining law that facilitates investor access to financing and supports exploration and geological survey activities, state news agency SPA said, quoting the minister of mining and industry, Bandar Alkhorayef.
In Dubai, the index rose 0.6%, with Emaar Properties rising 2.5% and Emirates Integrated Telecommunications up 1.6%.
Emirates airline redundancies continue for second day, sources say - Reuters
Emirates airline redundancies continue for second day, sources say - Reuters:
Emirates laid off more pilots and cabin crew on Wednesday in a second day of redundancies at one of the world’s biggest long-haul airlines, three company sources said.
An Emirates spokeswoman declined to comment beyond the airline’s statement on Tuesday that said some employees had been laid off. No further details were provided.
The Dubai-based carrier laid off hundreds of pilots and cabin crew on Tuesday in a bid to stave off a cash crunch caused by the coronavirus pandemic, sources told Reuters.
More redundancies were expected this week, including both Airbus (AIR.PA) A380 and Boeing (BA.N) 777 pilots, the sources said on Tuesday.
Emirates laid off more pilots and cabin crew on Wednesday in a second day of redundancies at one of the world’s biggest long-haul airlines, three company sources said.
An Emirates spokeswoman declined to comment beyond the airline’s statement on Tuesday that said some employees had been laid off. No further details were provided.
The Dubai-based carrier laid off hundreds of pilots and cabin crew on Tuesday in a bid to stave off a cash crunch caused by the coronavirus pandemic, sources told Reuters.
More redundancies were expected this week, including both Airbus (AIR.PA) A380 and Boeing (BA.N) 777 pilots, the sources said on Tuesday.
Column: LNG recovery in Asia depends on China, India policies - Russell - Reuters
Column: LNG recovery in Asia depends on China, India policies - Russell - Reuters:
The latest International Energy Agency (IEA) report on the global natural gas market makes sombre reading, especially for current and would-be producers of the super-chilled version of the fuel.
No doubt much of the commentary on the report, issued on Wednesday, will be around the headline forecast that global natural gas demand will drop by 4%, or 150 billion cubic metres (bcm) in 2020 as consumption takes a hit from the economic impact of the novel coronavirus.
The IEA forecasts a gradual recovery in demand in 2021 and 2022, but the impact of the coronavirus will be long lasting, increase uncertainties and dampen growth rates.
What recovery is there is in demand is likely to be led by liquefied natural gas (LNG) and will be led by Asian countries, the IEA said.
The latest International Energy Agency (IEA) report on the global natural gas market makes sombre reading, especially for current and would-be producers of the super-chilled version of the fuel.
No doubt much of the commentary on the report, issued on Wednesday, will be around the headline forecast that global natural gas demand will drop by 4%, or 150 billion cubic metres (bcm) in 2020 as consumption takes a hit from the economic impact of the novel coronavirus.
The IEA forecasts a gradual recovery in demand in 2021 and 2022, but the impact of the coronavirus will be long lasting, increase uncertainties and dampen growth rates.
What recovery is there is in demand is likely to be led by liquefied natural gas (LNG) and will be led by Asian countries, the IEA said.
Oil down as rising U.S. inventories reawaken supply anxiety - Reuters
Oil down as rising U.S. inventories reawaken supply anxiety - Reuters:
Oil prices fell on Wednesday after a rise in crude and fuel stockpiles in the United States revived fears about oversupply and falling fuel demand in the world’s largest crude consumer amid the coronavirus outbreak.
Brent crude futures LCOc1 fell 67 cents, or 1.6%, to $40.51 a barrel by 0636 GMT after gaining nearly 1% on Tuesday.
West Texas Intermediate (WTI) futures dropped 80 cents, or 2.1%, to $38.14 a barrel, having risen about 2% in the previous session.
The oil benchmarks rose to their highest in three months on Monday but some analysts think the market has risen too far, too fast as the coronavirus pandemic sweeps across the world with new infections posting daily highs.
Oil prices fell on Wednesday after a rise in crude and fuel stockpiles in the United States revived fears about oversupply and falling fuel demand in the world’s largest crude consumer amid the coronavirus outbreak.
Brent crude futures LCOc1 fell 67 cents, or 1.6%, to $40.51 a barrel by 0636 GMT after gaining nearly 1% on Tuesday.
West Texas Intermediate (WTI) futures dropped 80 cents, or 2.1%, to $38.14 a barrel, having risen about 2% in the previous session.
The oil benchmarks rose to their highest in three months on Monday but some analysts think the market has risen too far, too fast as the coronavirus pandemic sweeps across the world with new infections posting daily highs.
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