Oil prices are falling today amid concerns over demand, and investors are also awaiting the release of the US Department of Energy's weekly report on oil reserves in the country.
The cost of November futures for Brent oil on the London stock exchange ICE Futures by 9:39 Moscow time was $ 40.59 per barrel, which is $ 0.44 (1.07%) lower than the price at the close of the previous session. As a result of trading on Tuesday, these contracts fell by $ 1.4 (3.3%). November contracts for Brent expire with the close of trading on Wednesday.
The price of futures for WTI crude oil for November in electronic trading on the New York Mercantile Exchange (NYMEX) by this time amounted to $ 38.95 per barrel, which is $ 0.34 (0.87%) below the level of the previous session. On Tuesday, futures lost $ 1.31 (3.2%).
The American Petroleum Institute (API) said on Tuesday that US oil inventories in the week ended September 25 fell by 831,000 barrels. According to API, stocks of gasoline increased by 1.6 million barrels, distillates – decreased by 3.4 million barrels. Oil stocks at the Cushing terminal increased by 1.6 million barrels.
Analysts polled by S&P Global Platts, in turn, expect US Department of Energy data to show an increase in oil inventories last week by 1.9 million barrels. According to their estimates, stocks of gasoline fell by 1.3 million barrels, distillates – by 1.7 million barrels.
The US Department of Energy will publish a weekly report on energy reserves in the country today at 17:30 Moscow time.
Oil prices continue to be under pressure from fears related to the coronavirus pandemic. New York Mayor Bill de Blasio said on Tuesday that the proportion of tests for coronavirus with a positive result again exceeded 3% for the first time in recent months, writes CNBC.
“If New York gets close to introducing quarantine measures before the winter wave of the virus, oil demand expectations are likely to be severely lowered,” said an analyst at Oanda, quoted by S&P Global Platts.
In addition, the concern of traders is caused by the growth of production in Libya, as well as information that Russia may exceed quotas under the OPEC + agreement, writes Bloomberg.
“The development of events on the demand side is unfavorable, Russia is likely to exceed the OPEC + quotas, and the risks around the agreement to cut production are growing,” analysts at ANZ said.