Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Oil falls for second day as India's COVID-19 surge to dent fuel demand

CommoditiesApr 20, 2021 10:35PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A well head and drilling rig in the Yarakta oilfield in Russia

By Sonali Paul

MELBOURNE (Reuters) - Oil prices fell for a second day on Wednesday on concerns that soaring COVID-19 cases in India will drive down fuel demand in the world's third biggest oil importer.

Brent crude futures for June fell 52 cents, or 0.8%, to $66.05 a barrel at 0157 GMT, after dropping 48 cents on Tuesday.

U.S. West Texas Intermediate (WTI) crude futures for June fell 56 cents, or 0.9%, to $62.11 a barrel. The May contract expired on Tuesday down 1.5% at $62.44.

"You've seen refiners there (in India) scale back runs because demand has fallen with the spread of lockdowns. That's clearly weighing on the market and sentiment," said Lachlan Shaw, head of commodity research at National Australia Bank (OTC:NABZY) .

India, also the world's third-largest oil user, on Tuesday reported its worst daily death toll from COVID-19 and is facing an oxygen supply crisis to treat patients. Large parts of the country are now under lockdown due to a huge second wave of the pandemic.

Further weighing on the market, data from the American Petroleum Institute (API) industry group showed U.S. crude oil and distillate stocks rose in the week ended April 16, according to two market sources, compared with analysts' forecasts for declines in crude and distillate inventories.

Crude stocks rose by 436,000 barrels, API reported, according to the sources. Analysts polled by Reuters had expected a 3 million bbl drawdown in crude stocks.

Distillate stocks, which include diesel, heating oil and jet fuel, rose by 655,000 barrels, compared with analysts' forecasts for a 1 million barrel decline.

The U.S. Energy Information Administration will release its inventory data for last week later on Wednesday.

Analysts said despite the pandemic hotspots in places like India and growing concerns in Japan, the world's fourth-biggest oil user, signs are still positive for a fuel demand recovery in the United States, UK and Europe.

"Driving is soaring in the UK as the vaccine rollout accelerates. Such is also the case in the US, where drivers consume over 10% of the world's oil," ANZ analysts said in a note.

Oil falls for second day as India's COVID-19 surge to dent fuel demand
 

Related Articles

Crude Oil Edges Higher; Mixed Covid News
Crude Oil Edges Higher; Mixed Covid News By Investing.com - Jul 27, 2021 1

By Peter Nurse    Investing.com -- Crude oil prices edged higher Tuesday, stabilizing after Monday’s fall on optimism the global demand recovery will overshadow a resurgence in...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
momita rahi
momita rahi Apr 21, 2021 12:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The U.S. Energy Information Administration will release its inventory data for last week later on Wednesday.The U.S. Energy Information Administration will release its inventory data for last week later on Wednesday.
Randy Lahey
Randy Lahey Apr 20, 2021 11:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hold your energy stocks and buy more. Wait until the psy-op is over and cash in, hopefully by summer or q3 2021.
Fabrice Lange
Fabrice Lange Apr 20, 2021 11:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
sorry desagree. mayby up for summer indeed. But we are going to see before 5 years the end of this energy. Hydrogen is arriving very very fastly. Billions are investing in.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email