News24
28 Oct 2020, 20:13 GMT+10
Oil prices slumped Wednesday, shedding more than 5% as traders fretted that the worsening coronavirus crisis would further slash the world's appetite for crude.
At about 15:10, New York's main contract, West Texas Intermediate crude for delivery in December, was down 5.4% to $37.44 per barrel. London's Brent North Sea crude for the same month lost 4.6% at $39.32.
"The second wave of Covid has hit and (there is) probably another one to come, with restrictions curtailing movement of people and the shutting down of businesses, impacting rapidly on demand for oil," Alfa Energy chairman John Hall told AFP.
"We also have higher-than-expected stockpile in the US following the recent storms so, overall the industry is not going to get up and running just yet."
Rising inventories in the United States indicate weaker demand in the key crude consuming nation, and therefore tend to push prices lower.
Oil's latest losses meanwhile mirrored a broader sell-off on global stock markets.
European leaders are being forced to revert to strict, economically damaging measures to control the spread of the virus.
"Prices fell as the Covid-19 pandemic is holding strong, registering daily new infection count highs across several countries, causing governments to (reintroduce) strict lockdowns which in turn reduce demand for oil," said Bjornar Tonhaugen, head of oil markets at Rystad Energy.
"News from Europe also helped pull down prices, as both France and Germany are expected to announce new curbs to fight the second wave of Covid-19."
Oil traders are also on tenterhooks ahead of the US presidential election on November 3 between Republican President Donald Trump and his Democratic opponent Joe Biden, who is currently leading at the opinion polls.
"The outlook is further curtailed by the potential result of the US election next week," Hall added.
"To an extent, the industry is fearful of a Biden win, although policies in the short term have yet to be finalised but while Biden is the front runner the market will remain nervous.
"Uncertainty will prevail certainly until the Covid-19 virus is brought under some level of control and that could take us well in to the next year."
Get a daily dose of Asia Pacific Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Asia Pacific Star.
More InformationWASHINGTON, D.C.: President Donald Trump says the United States could soon reach a trade deal with India. He believes this deal would...
DHARAMSHALA, India: The Dalai Lama is set to address a significant three-day conference of Buddhist leaders this week, coinciding with...
BEIJING, China: China's national soccer team may struggle to stir excitement, but its humanoid robots are drawing cheers — and not...
]LONDON, U.K.: A World Health Organization (WHO) expert group investigating the origins of the COVID-19 pandemic released its final...
Nearly three months after a devastating earthquake struck Myanmar, the country remains trapped in a deepening crisis, compounded by...
Birmingham [UK], July 5 (ANI): Indian skipper Shubman Gill concluded a record-breaking Birmingham Test against England with breathtaking...
FRANKLIN, Tennessee: Hundreds of thousands of Nissan and Infiniti vehicles are being recalled across the United States due to a potential...
REDMOND, Washington: Microsoft is the latest tech giant to announce significant job cuts, as the financial strain of building next-generation...
LONDON UK - U.S. stock markets were closed on Friday for Independence Day. Global Forex Markets Wrap Up Friday with Greeback Comeback...
SANTA CLARA, California: Nvidia came within a whisker of making financial history on July 3, briefly surpassing Apple's all-time market...
SACRAMENTO, California: California's multibillion-dollar farms are facing a growing crisis—not from drought or pests, but from a sudden...
WASHINGTON, D.C.: President Donald Trump says the United States could soon reach a trade deal with India. He believes this deal would...