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In trading on Thursday (3), crude oil futures prices closed lower and Brent crude oil fell to its lowest closing price since July, as the market was still concerned about the demand outlook.
Crude oil prices fell further in early trading, as tech stocks caused US stocks to crash after the crash.
Tyler Richey, co-editor of Sevens Report Research, said: “The energy sector has stabilized, but in part due to the fact that the volatility of the stock market that day was not about the global economy, the new corona virus or stimulus measures, but because of the real negative news. Too tall.”
- The price of WTI crude oil futures for October delivery fell 14 cents, or nearly 0.3%, to settle at $ 41.37 a barrel, an intraday low of $ 40.22.
According to market data from Dow Jones, the price of WTI crude, which has fallen for two consecutive days, is currently at its lowest closing price since August 7.
- The price of Brent crude futures for November delivery fell 36 cents, or 0.8%, to settle at $ 44.07 a barrel, the lowest closing price for the Brent contract since July 31.
The EIA announced on Wednesday that last week, US crude oil supplies fell dramatically by 9.4 million barrels and gasoline inventories fell by 4.3 million barrels. However, due to still weak demand, the inventory report did not provide oil price support.
Phil Flynn, a senior analyst at the Price Futures Group, said the data showed that demand was affected and that the decline in inventory was due to a single hit from Hurricane Laura.
The EIA announced that the supply of gasoline products (an indirect indicator of demand) has fallen by 8.9% compared to the same period last year, distilled oil (including thermal fuel) has fallen by 5.1% and jet fuel products are down 47.1%.
At the same time, after the hurricane made landfall on August 27, oil production in the Gulf of Mexico recovered significantly. The Office of Safety and Environmental Compliance (BSEE) estimated on Thursday that the currently closed crude production capacity in the Gulf of Mexico has been closed since the hurricane touched down last Thursday. 84% at that time fell to 16.3%.
Traders are also watching Thursday’s economic data to see the outlook for energy demand. However, the data released Thursday was mixed. For example, the number of initial claims for unemployment benefits dropped by 130,000 in the last week of August to 881,000 after a seasonal adjustment. However, official data showed that the trade deficit increased 18.9% in July due to a strong rebound in imports. Additionally, the US August ISM Non-Manufacturing PMI fell to 56.9, which fell short of expectations, but still maintains an expanding trend.
Richey believes: “This week’s economic data has been staggered and the stock market can be described as lukewarm. This is a good thing for most risk assets, because Congress will remain under pressure and will need to pass another article as soon as possible. Stimulus measures “.
“If the data is worse, we may see the recovery sentiment worsen and traders will also eliminate risks. Conversely, if recent economic data improves, Congress may archive a new round of rescue plans in the future. close, which may inspire risky assets to leave. “
The dollar’s rally also limits the rise in commodities. Earlier this week, the US dollar hit a more than two-year low, which supported energy prices, but now the ICE US Dollar Index has recovered and is up about 0.5% in so far this week.
Other energy raw materials
- The price of gasoline futures for October delivery rose 0.2% to close at $ 1.2049 a gallon.
- The price of hot fuel oil futures for October delivery fell nearly 1.8% to close at $ 1.1677 a gallon.
- The price of natural gas futures for October delivery rose 0.04% to close at US $ 2.487 per million Btu.
The EIA announced Thursday that last week (as of August 28) domestic natural gas supply in the United States increased by 35 billion cubic feet, roughly in line with analysts’ expectations. According to the S&P Global Platts survey, analysts expect natural gas inventories to rise an average of 34 billion cubic feet last week.
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