Oil continued to fall in price amid rising inventories and weakening demand

Oil continued to fall in price amid rising inventories and weakening demand

Oil continued to fall in price amid rising inventories and weakening demand

TOKYO (Reuters) – Oil prices fell on Friday for the second day in a row amid a sudden surge in US inventories as the coronavirus pandemic continues to erode fuel demand.

Futures for Brent crude oil fell 0.3% to $ 39.94 per barrel by 09:33 Moscow time, for WTI – dropped 0.13% to $ 37.25 per barrel.

Both benchmarks sank about 6.5% over the week and may show a second week of decline as hopes for a sustained recovery in fuel demand are weakened by signs of a second wave of coronavirus.

US oil inventories rose 2 million barrels in the week ended September 4 to 500.4 million barrels, the Energy Information Administration (EIA) said on Thursday, contrary to analysts' expectations of a 1.3 million barrels drop.

“As US oil production continues to recover from Hurricane Laura, the numbers show refineries have further lowered their financial forecasts over the past week,” said a note to ING Economics clients.

In another bearish sign, traders have again begun booking oil and diesel storage tankers.

(Aaron Sheldrick, translated by Elizaveta Zhuravleva. Editor Anna Kozlova)

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