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On Monday, rising coronavirus cases in different parts of the world led to the decline in oil prices. The increasing tension between the US and China also contributed towards this downfall. Brent went down by 1.5% and was traded at $48.49 a barrel. WTI slipped by 1.8% and was traded at $45.44 a barrel.
OPEC+ has left the market in the state of uncertainty by delaying the decision on January's output. Oil prices dropped on Wednesday over these sentiments and a sudden build in oil inventories in the United States. Brent slipped by 0.9% and was traded at $47.01 a barrel. WTI decreased by 1% and was traded at $44.09 a barrel.
Oil prices dropped on Monday ahead of the OPEC+ meeting. Brent dropped by 1% and was traded at $47.72 a barrel. WTI slipped by 1.1% and was traded at $45.05 a barrel. The producer group met on Sunday but hasn't decided on oil output policy for 2021. Further talks will be held on Monday and Tuesday.
A weak dollar and recent vaccine progress lifted the spirit of the market on Friday. Brent increased by 0.6%, to $48.08 a barrel. WTI was down by 0.9%, to $45.31. However, JP Morgan stated, “While a successful vaccine rollout should break the link between infection and mobility, even then global oil demand will likely only reach its pre-pandemic run rate by mid-2022”.
"The recent breakthrough on a Covid-19 vaccine is a hope for the swift recovery of global energy demand next year. HSBC Bank analyst Gordon Gray recently stated-"The recent news around Covid-19 vaccines has boosted crude prices as markets start to look to a return to some sort of normality in 2021, also we expect OPEC+ to err on the side of caution as it evaluates how the market evolves.”
Successful coronavirus vaccine trials have helped the market extend the gains on Monday. Traders are looking for a substantial recovery in the demand of the crude. However, the gains were capped by the renewed lockdown in several countries. Brent increased by 0.5% and was traded at $45.17 a barrel. WTI gained 0.2% and was traded at $42.52 a barrel.
With the surge in coronavirus cases, on Thursday, oil futures shed gains from the previous day. There has been a wave of demand concerns weighing down upbeat vaccine news. Brent decreased by 0.4% and was traded at $44.17 a barrel. WTI went down by 0.7% and was traded at $41.53 a barrel. The economic damage due to COVID-19 overshadowed the vaccine news from Pfizer and BioNTech.
OPEC+ might decide to postpone a 2 million barrel-a-day production increase which was scheduled for January. The final decision for the same won't be made until the complete wrap-up of the OPEC+ meeting, scheduled from Nov 30 to Dec 1. While addressing the conference Prince Abdulaziz said - "Vaccine development was good news but was counterbalanced by a surge in cases in the second wave of infections and there is still a long way to go".
US crude stocks rose above the market expectations on Wednesday. As a result, oil prices were stable. Further, weaker US retail sales have brought back demand fears. Brent increased by 0.1% and was traded at $43.78 a barrel. WTI went up by 0.1% and was traded at $41.40 a barrel. Hopes of production cut from OPEC and its allies have held the market for now.
Coronavirus vaccine hopes and OPEC+ meeting drive oil prices uphill on Tuesday. The industry is hoping that OPEC+ will extend the oil production cuts for at least three months. Brent went up by 0.4%, to $43.98 a barrel. WTI increased by 0.3% and was traded at $41.47 a barrel. Further, Bernstein Energy said, “Oil demand in China is exceeding pre-COVID-19 levels which suggest oil demand is not permanently impaired”.
Increasing COVID -19 cases in Europe and the United States have got the industry to worry about fuel consumption. On Friday, oil prices were stable. Brent increased a little and was traded at $37.68 a barrel. WTI went up and was traded at $36.25 a barrel. Further, OPEC+ has planned to increase the output by 2 million barrels per day (bpd) in January.
OPEC+ fears the second wave of COVID-19. The cartel is particularly troubled due to the jump in Libyan output. On Thursday, the Joint Technical Committee held a virtual meeting to discuss the issues. "In particular, a resurgence of COVID-19 cases across the world and prospects for partial lockdowns in the coming winter months could compound the risks to economic and oil demand recovery," said the panel.
The low demand, pandemic, and increased supply from OPEC lead to more than a 5% downfall in oil prices. Brent Crude saw a down of 4.5% to $40.4 a barrel, while U.S WTI crude dropped by 5.3% to $38.13.According to a recent report from Standard Chartered Analysts the global demand is estimated to fall 9.03 million bpd in 2020 and recover by 5.57 million bpd in 2021.
Oil prices fell on Thursday. Brent crude was down 44 cents, at $44.93 a barrel, and U.S. WTI oil fell 44 cents, at $42.49 a barrel. The fall was driven by major demand concerns as well as cautious views from OPEC+ producers and the U.S. Federal Reserve regarding economic recovery from the coronavirus pandemic. Overall fuel demand in the last four weeks is down 14% from year-ago levels.
Oil prices clutched onto most of their overnight gains on Tuesday. Brent crude was down 18 cents, at $45.19 a barrel. U.S. WTI crude was down 26 cents, at $42.63 a barrel, having risen 2.1% in the previous session. Oil prices held onto most as the OPEC+ members were almost fully complying with agreed output cuts to support prices amid a drop in demand for fuels due to the pandemic.
Oil prices slipped on Friday in the midst of developing vulnerability about the worldwide recuperation in fuel demand as coronavirus cases flooded in a few nations. Brent crude slipped 26 cents to $43.11 a barrel. U.S. WTI dropped 23 cents to $40.52. The two benchmark crudes fell 1% on Thursday after the OPEC and its allies agreed to trim their record supply cuts by 2 million bpd, starting in August.
Oil prices fell on Thursday after OPEC and other producers including Russia agreed to ease record supply curbs from August, though the drop was cushioned by tightening global inventories as economic activity picks up. The OPEC and its allies, known as OPEC+, agreed on Wednesday to scale back oil production cuts from August. They will reduce their cuts to 7.7 million bpd through December from the 9.7 million bpd cuts in place since May.
Oil prices rose on Tuesday after a volatile session sparked by confusion over the status of the US-China trade deal. Brent crude rose 1.1%, to $43.57 whilst WTI rose 1.2%, at $41.21. Markets were unsettled by surprise comments from White House trade adviser Peter Navarro, who said the hard-won deal was "over", though US President Donald Trump later soothed jangled nerves with an assurance that the agreement was fully intact.