Oil prices trended a bit lower on Friday, ando posted their second straight weekly loss as stockpiles rise around the world and fuel demand struggles to rebound to pre-coronavirus levels.
Both Brent and U.S. crude lost about 6% on the week after a series of signals that showed markets still have an abundance of supply. Saudi Arabia and Kuwait cut official selling prices to Asia, U.S. stockpiles rose and traders are booking vessels for storage.
Coronavirus infections are growing in several countries, led by India, where the health ministry reported a record daily jump of 96,551 new cases on Friday, taking the official total to 4.5 million.
U.S. stock markets ended lower for a second week following several economic indicators that suggest a long and difficult recovery from the pandemic. The financial markets are continuing to set the tone, including on the oil market… fears about an oversupply have added to the general feeling of uncertainty.
In the United States, crude stockpiles rose 2 million barrels last week. Refineries slowly returned to operations after production sites were shut due to storms in the Gulf of Mexico.
Traders are starting to book tankers again to store crude oil and diesel, another signal of oversupply amid a stalled economic recovery as the COVID-19 pandemic continues.
The market monitoring committee Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, or OPEC+, will meet on Sept. 17 to consider how to deal with worldwide oversupply. The group reduced output in the spring to allow stockpiles to run down. In recent days, both Saudi Arabia and Kuwait lowered their official selling prices for crude to Asia for October, a signal of slower demand.
Angola’s state oil company Sonangol sold one of its last October-loading cargoes although there is still ample supply, traders said on Friday, while a large unsold volume was weighing on the Nigerian market.
* Angola programme shows around 10 cargoes were left from the October loading programme. This is a fairly sizeable volume for this point in the trading cycle, with November schedules expected next week.
* At least around 40 cargoes of Nigerian crude remain for export for September and October, weighing on the market. Bonny Light and Qua Iboe were being offered at about dated Brent parity, a trader said, and likely to be sold at a discount.
The Prices are as follows:
(1)Dated Brent =$39.045 /bbl (-0.39)
(2)Bonny Light =$38.745 /bbl (-0.32)
(3)QuaIboe =$38.345 /bbl (-0.32)
(4)Forcados =$38.845 /bbl (-0.32)
Premium unleaded pms= $382.00 /mt (-2)
0.1% Gasoil= $314.75/mt (1.5)
Clean Tanker freight UKC-WAF= $20.85/mt (0)
Stay Safe and have a wonderful week.