Prices of oil fell dramatically on the third day of the business week, as the demand in United States, world’s largest oil consumer; dented after spike in coronavirus cases.
According to media reports, Brent crude fell 32 cents, or 0.7%, to $44 a barrel, and U.S. West Texas Intermediate (WTI) crude CLc1 dropped 33 cents, or 0.8%, to $41.59.
Oil prices climbed about $1 the previous day, reaching their highest since March 6.
Furthermore Southern Iraqi exports in the first 20 days of July averaged 2.70 million bpd.
Market Analysts said “Crude’s rally hit a brick wall after the API report showed a sharp rise in stockpiles and on President Trump’s warning that the coronavirus pandemic in the U.S. is likely to worsen,”
Although Oil prices rose on Tuesday on hopes for a COVID-19 vaccine and after European Union lenders agreed on ($859 billion) fund to prop up virus-hit economies.
There are also signs that Iraq, the second-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), still not meeting its target under an OPEC-led supply cut deal.
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Asian Markets
Asian Shares showed a mixed trend on start of the trading on Wednesday.
Benchmarks rose in Tokyo, Shanghai and Seoul but fell in Hong Kong.
Tokyo’s Nikkei 225 index lost 0.4% to 22,791.66 while the Hang Seng in Hong Kong edged 0.1% lower to 25,610.94.
The Shanghai Composite index gained 0.3% to 3,332.
S&P 500 added 0.2% to 3,257.30 for a third straight gain.
