Oil Prices Sputter As Coronavirus Fuels Renewed Demand Concerns
Oil prices slipped on Thursday on concerns over demand recovery due to the resurgence of the coronavirus.
Benchmark Brent crude dropped 29 cents or 0.64 percent to $44.88 a barrel, while West Texas Intermediate (WTI) U.S. crude futures were roughly flat, rising 2 cents or 0.04 percent to $42.76 a barrel.
The Organization of the Petroleum Exporting Countries and its allies (OPEC+) warned on Wednesday that the pace of oil market recovery appeared to be slower than anticipated.
Investors were also reacting to the lack of inflationary comments, downbeat economic outlook and negative comments about yield curve control in minutes from the Federal Reserve’s latest policy meeting.
On the supply front, stockpiles of crude in the United States fell for a fourth straight week, even as net imports rose, the Energy Information Administration (EIA) said on Wednesday.
According to the EIA data, fuel demand decreased by 14 percent from the year-earlier period over the last four weeks.