• 4 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 7 minutes Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 13 minutes NordStream2
  • 22 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 5 hours California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 1 day "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 5 hours U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 2 days An Indian Opinion on What is Going on in China
  • 10 hours Nord Stream - US/German consultations
  • 3 days Can Technology Keep Coal Plants Alive and Well?
  • 4 days Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry
  • 3 hours Australia sues Neoen for lack of power from its Tesla battery
  • 3 days Storage of gas cylinders
  • 4 days Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 6 days Perfect Energy Storm in Europe: turning our back on fossil fuels is easier said than done!
Why U.S. LNG Is Going To Asia Instead Of Europe

Why U.S. LNG Is Going To Asia Instead Of Europe

U.S. shale drillers are selling…

Can Colombia Capitalize On Climbing Crude Prices?

Can Colombia Capitalize On Climbing Crude Prices?

While Colombia’s rig count has…

Oil Prices Plunge 5% As Demand Fears Intensify  

Oil prices plummeted early on Wednesday, with Brent falling below $40 a barrel, dragged down by estimates of a surge in U.S. inventories and the surge in coronavirus cases in the United States and Europe.

As of 9:44 a.m. EDT on Wednesday, before the EIA inventory report, WTI Crude was down by 5.66 percent at $37.33, and Brent Crude prices were dropping by 4.85 percent at $39.19, after the American Petroleum Institute (API) reported on Tuesday a bigger build than expected in crude oil inventories of 4.577 million barrels for the week ending October 23.

The API also reported a surprise build in gasoline inventories of 2.252 million barrels for the week ending October 23—compared to the previous week’s 1.622-million-barrel draw. Analysts had expected a 2.0-million-barrel draw for the week.

If confirmed by the EIA later on Wednesday, another gasoline build could point to further weakening in U.S. gasoline demand. For the previous week, the EIA reported the largest gasoline draw since June, even as refineries cut utilization rates and gasoline production for the week to October 16.

The bearish signals drove down oil prices lower late on Tuesday and into Wednesday, even though oil producers in the Gulf of Mexico continued to shut in production ahead of Hurricane Zeta. As of late on Tuesday, as much as 49.45 percent of the oil production in the U.S. Gulf of Mexico was shut-in, according to data from the Bureau of Safety and Environmental Enforcement (BSEE).

The market continues to focus on the bearish signs—rising U.S. inventories, increased oil supply from Libya, and a full-blown second COVID-19 wave in major developed economies threatening the economic and oil demand recovery.

“Following earlier gains on hurricane Zeta worries, the pendulum swing back against oil late yesterday after the API said inventories rose by 4.6 million barrels last week, the dollar rose on European virus and BP saying the pace of the recovery in oil demand remains uncertain,” John Hardy, Head of FX Strategy at Saxo Bank, said early on Wednesday.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News