Oil Mixed, Production Decreased Over Delta’s Imminent Arrival By Investing.com

© Reuters.

By Gina Lee

Investing.com – Oil was mixed on Thursday morning, with the approach of Hurricane Delta prompting oil works to evacuate rigs in the Gulf of Mexico. But gains were capped by nagging fuel demands as the U.S., the world’s largest oil consumer, continues its struggles to pass its latest stimulus measures.

edged up 0.12% to $42.04 by 12:23 AM ET (4:23 AM GMT) and inched down 0.08% to $39.92, giving up earlier gains.

Delta is intensifying into a Category 3 storm, with 183 offshore facilities evacuated and almost 1.5 million barrels pe day (bpd) of oil output halted in the region. The storm is the latest of several to hit the area, which accounts for 17% of U.S. crude output, in recent months.

Investor hopes that the U.S. Congress would pass even a piecemeal stimulus package were revived after President Donald Trump took to Twitter suggesting packages for airlines and small businesses, as well as stimulus checks of $1,200 for individuals.

However, White House officials reiterated on Wednesday that “stimulus negotiations are off” in rthe wake of Trump halting talks between Republicans and Democrats until after the Nov. 3 presidential election.

Some investors also remained pessimistic.

“A piecemeal approach to U.S. fiscal stimulus is unlikely to alter a deteriorating demand outlook for oil,” ANZ commodities analyst Vivek Dhar said in a note.

The possibility that no economic support measures will be passed was also reflected in Wednesday’s data from the U.S. Energy Administration (EIA) showing oil demand decreased 13.2% from the previous year, highlighting the plunge in fuel demand attributable to the COVID-19 impact.

The EIA data also showed a for week to Oct. 2. It also showed a bigger-than-expected , the lowest level since November 2019, against the previous week’s 683,000-barrel build. Forecasts prepared by Investing.com predicted a 471,000-barrel draw.

The American Petroleum Institute (API) reported a on Tuesday.

“As global oil demand falters, there is increasing pressure on global oil supply to adjust lower to keep prices supported,” Dhar added. His note also forecast Brent futures to average $41 a barrel in the current quarter.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

{n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};
s.parentNode.insertBefore(t,s)}(window, document,’script’,
fbq(‘init’, ‘751110881643258’);
fbq(‘track’, ‘PageView’);

by : Investing.com

Source link

Capital Media

Read Previous

IMF Media Center : IMF Fiscal Monitor

Read Next

un mirage se cache derrière la performance des indices boursiers