Oil prices fall 1% as glut weighs

FILE PHOTO: The solar units behind a crude oil pump jack on a drill pad within the Permian Basin in Loving County, Texas, U.S. November 24, 2019. Picture taken November 24, 2019. REUTERS/Angus Mordant/File Photo

NEW YORK (Reuters) – Oil prices opened about 1% decrease on Sunday as a persistent glut continued to weigh on prices and the coronavirus pandemic eroded world oil demand even as some governments started to ease lockdowns.

Brent crude LCOc1 was down 29 cents, or zero.9%, at $30.68 a barrel by 6:05 p.m. ET (2205 GMT) whereas U.S. oil CLc1 fell 26 cents, or 1.1%, to $24.48 a barrel.

Global oil demand has plummeted by about 30% as the coronavirus pandemic curtailed motion the world over.

“Oil companies are dealing with a plethora of challenges due to the sudden decline in demand,” Haseeb Ahmed, oil and gasoline analyst at GlobalInformation, stated in a notice.  

“North America is battling a severe shortage of storage capacity … it may be only a matter of time, before the country (United States) runs out of storage space.”

However, each benchmarks have notched positive aspects over the previous two weeks as nations have eased lockdowns and gasoline demand has rebounded modestly. Oil manufacturing worldwide can also be declining to scale back a swelling provide glut.

In a televised tackle, British Prime Minister Boris Johnson introduced on Sunday a restricted easing of restrictions, together with letting folks train outdoors extra usually and inspiring some folks to return to work.

Spain registered its lowest each day variety of coronavirus deaths on Sunday since mid-March and half of its inhabitants ready for an easing of one among Europe’s strictest lockdowns, although not but the residents of cities such as Madrid and Barcelona.

Reporting by Devika Krishna Kumar in New York; Editing by Daniel Wallis

Our Standards:The Thomson Reuters Trust Principles.

Source link reuters.com

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