Photographer: Simon Dawson / Bloomberg
Photographer: Simon Dawson / Bloomberg
Oil is slipping into a losing streak of two days, when Saudi Aramco predicts demand will continue to improve through the rest of the year, despite many regions around the world struggling to bring the coronavirus under control.
Raw consumption in Asia is almost back to pre-virus levels, Aramco Chief Executive Officer Amin Nasser said Sunday after the world’s top exporters reported a second-quarter battle profit. Meanwhile, oil supplies in the US fell after a 15-year hiatus when explorers abandoned growth plans and lost billions of tons of ancient discoveries worthless.
Oil shows some signs of potentially breaking higher after rising near $ 40 a barrel since rising in early June virus infections cast doubt on a sustained recovery. However, OPEC + is set to test the appetite for demand, back then some supply to the market this month after historic production battles.
Demand for demand is better than expected and that is price support, said Michael McCarthy, chief market strategist at CMC Markets Asia Pacific. Reducing cuts on OPEC + is already in price, but sentiment is mixed after an economic recovery by the second half of the year, he said.
See also: Saudi Arabia Disables US Oil Taps Again: Julian Lee
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The demand for oil is about 90 million barrels per day, Aramco’s Nasser said, compared to pre-pandemic levels of about 100 million barrels per day. The state-owned firm reported a 73% decline in second-quarter net income after crude prices plummeted after a crash in consumption.
In the US, the number of active drill rigs fell by four to 176, the lowest since July 2005, according to data released by Baker Hughes Co. Companies parked rigs on an almost uninterrupted stretch for more than four and a half months.
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