[ad_1]
In trading on Tuesday (29), crude oil futures prices fell sharply. Both WTI crude oil prices and Brent crude prices reached their lowest closing prices in 2 weeks.
The number of deaths from the new corona virus worldwide has exceeded one million. Investors are concerned that the global number of confirmed cases of the novel coronavirus will continue to rise, which may curb appetite for crude oil and other energy assets in the long term.
Robbie Fraser, senior commodities analyst at Schneider Electric, said: “This reminds the market that the new corona pneumonia has brought unprecedented challenges, and various epidemic prevention efforts can hardly provide quick fixes. The epidemic represents the experience found when the crude oil market looks for a pick-up in demand. Large and continuing downside risks. “
- The price of WTI crude oil futures for November delivery fell $ 1.31, or nearly 3.2%, to close at $ 39.29 a barrel.
- Brent crude futures for November delivery fell $ 1.40, or nearly 3.3%, to close at $ 41.03 a barrel. The most recent month’s contract expires on Wednesday.
Dow Jones market data shows that WTI and Brent crude oil futures prices closed at their lowest closing prices since September 15.
The possible halt in Norwegian oil production on Monday and the weakening of the US dollar helped crude oil futures prices close higher, but the rise was suppressed by the worsening of the new corona epidemic in some parts. of the world.
Oil market traders have also been concerned about the development of conflict events in Southwest Asia. The Armenian and Azerbaijani armed forces have been fighting in the separatist area of Nagorno-Karabakh.
ICICI Bank analysts noted that the conflict between Armenia and Azerbaijan “has put the market on the edge. Once the conflict escalates, it may affect Azerbaijan’s exports of crude oil and natural gas.”
Investors are also paying attention to API’s inventory report on Tuesday evening and the official inventory report to be released by the EIA on Wednesday. API announced that crude oil inventories fell by 831,000 barrels last week.
According to an S&P Global Platts survey, analysts expected on average last week (9/25) that crude oil supplies will increase by 1.9 million barrels, gasoline inventories will fall by 1.3 million barrels and distillates (including thermal fuel) will fall by 1.7 million barrels.
Other energy raw materials
- The price of gasoline futures for October delivery fell 3.6% to close at $ 1.2017 per gallon.
- The price of hot oil futures for October delivery fell 2.7% to close at $ 1.1090 a gallon.
Both October contracts expire after the close of business on Wednesday.
- The price of natural gas futures for November delivery fell 8.4%, closing at US $ 2,561 per million Btu.
Christin Redmond, commodities analyst at Schneider Electric, said: “The weather forecast shows that the temperature in the west will be higher than normal in the next 6 to 14 days, but the temperature in the east will be lower than normal. normal”.
“Higher-than-normal temperatures will now become a bearish driver for prices as this can lead to lower demand for heat supply, so lower-than-normal temperatures will support instead.”
[ad_2]
