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

Oil slips on demand worries, Hong Kong tensions

CommoditiesMay 26, 2020 10:15PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: An employee holds a sample of crude oil at the Irkutsk Oil Co-owned Yarakta field in the Irkutsk region

By Aaron Sheldrick

TOKYO (Reuters) - Oil prices fell on Wednesday on revived concerns over how quickly fuel demand will recover even as coronavirus lockdowns begin to ease in many countries, while U.S.-China tensions added to negative sentiment.

Brent crude futures fell 21 cents, or 0.6%, to $35.96 by 0120 GMT. U.S. West Texas Intermediate (WTI) crude futures were down 31 cents, or 0.9%, at $34.04 a barrel.

The Organization of the Petroleum Exporting Countries and producers including Russia, a grouping referred to as OPEC+, are cutting their output by nearly 10 million barrels per day in May-June to buttress prices as measures to rein in the coronavirus pandemic have slashed fuel demand.

In the United States, where some states are opening up after lockdowns, optimism about an increase in demand has supported sentiment, but the recovery is fragile, analysts caution. The Memorial Day holiday just passed typically heralds the start of the peak U.S. demand season.

"Early estimates suggest gasoline demand is down by as much as 30% from last year as people stay close to home," ANZ Research said in a note.

Some analysts and banks are predicting a balanced oil market as soon as June, but that could be too optimistic, according to Eurasia Group.

There is ... a significant risk of repeat outbreaks and lockdowns. Even without them, some restrictions - especially on aviation - will remain in place," it said in a note.

Still as U.S. demand picks up, however slowly, there are signs that inventories are falling. U.S. crude inventories are forecast to have fallen for a third week last week, according a Reuters poll of analysts. [EIA/S]

Prices were also under pressure after U.S. President Donald Trump's economic adviser, Larry Kudlow, said China was making "a big mistake" with national security legislation on Hong Kong.

Beijing's proposed security law would reduce the territory's separate legal status. China's parliament is expected to approve it by Thursday.

Oil slips on demand worries, Hong Kong tensions
 

Related Articles

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 (7)
mike frykberg
mike frykberg May 27, 2020 12:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Well we all know if it comes from CNN or any of its many affiliates it is probably just a made up fake news story
Diddl One
Diddl One May 26, 2020 10:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
so much writing to say nothing. could be written by a politician.
David Wang
David Wang May 26, 2020 10:41PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This the start of the end of Hong Kong financial markets.
Vini Narang
Vini Narang May 26, 2020 10:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So this market will rally to 3200 or 3300 this month into next month. Then comes earnings for the second quarter fueled by trade war, market drops like crazy! There has to be a war in order to get spending going. This sounds crazy but its immenent. This war will be around elections. So far whatever i predicted has been at par. Next month end or in the middle atart buying some september, october puts. You will run to the bank!
Robert DZ the patterns
Robert DZ the patterns May 26, 2020 9:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I just need 13% correction
rr dd
rr dd May 26, 2020 9:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Tomorrows article gonna say oil jumps on demand expectations
Robert DZ the patterns
Robert DZ the patterns May 26, 2020 9:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
And virus hopes or vaccine hopes, or hopes of hopes.
Mariano Moro
Mariano Moro May 26, 2020 9:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
WAR: a state of armed conflict between different countries. This can make WTI price go up super fast, supero high. even not an actual war. the idea of. read between lines.
 
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