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In trading on Thursday (5), the price of crude oil futures fell for the first time in four business days. It was because the market’s focus shifted to the continued increase in new crown boxes globally, fearing that the economic slowdown could dampen energy demand. Investors continue to pay attention to the results of the US presidential elections.
Oanda senior market analyst Craig Erlam said that so far this week, oil has seen a “significant recovery, but it eventually ran out of momentum and appeared to start profitable trading.”
He believes prices have previously fallen to the point where “major oil producers urgently need to act,” but this week’s price rally has eased pressure from OPEC + on production cuts, at least until OPEC + meets at the end of this month. “
- The price of WTI crude oil futures for December delivery fell 36 cents, or nearly 0.9%, to close at $ 38.79 a barrel, an increase of 8% so far this week.
- The price of Brent crude futures for January delivery fell 30 cents, or nearly 0.7%, to close at $ 40.93 a barrel.
Analysts said the continued rise in COVID-19 infections continues to be a disadvantage for the market. The Wall Street Journal reported that 102,800 people were newly diagnosed in the United States on Wednesday, marking the first single-day diagnosis to exceed 100,000.
Robert Yawger, Mizuho Securities Director of Energy, said: “Biden may be more active in preventing epidemics. Biden may be more willing to listen to scientific advice and take the necessary steps to contain and control the virus.” Very unfavorable “.
Crude oil prices may still close this week due to declining crude supply in the United States, and OPEC + will consider extending the current production cut quota until early next year, rather than relaxing oil restrictions. the quota in January. This also provides crude oil. Support force.
Analysts at Sevens Report Research said Thursday: “Overall, Wednesday’s supply data is good for energy as oil inventories and production fell, but at the same time refining volume increased. future, if these trends continue, then recent oil prices The fact that it has hit a multi-month low may be wishful thinking. It’s just the violent volatility in the overall market during the election period, especially if OPEC + withdraws their original decision to increase production in January next year, or better yet, decide to extend production cuts to support oil prices. “
Other energy raw materials
- The price of gasoline futures for December delivery rose 0.7% to close at $ 1.1159 a gallon.
- The price of hot oil futures for December delivery fell 0.3% to close at $ 1.1696 a gallon.
- The price of natural gas futures for December delivery fell 3.4% to close at US $ 2,942 per million Btu, closing for the fourth consecutive day and the lowest contract price of the previous month since October 20.
The EIA report shows that last week (10/30) the supply of natural gas in the United States fell by 36 billion cubic feet, the first time since it entered the heating season, and the reduction was higher than analysts expected. Natural gas prices initially rose after the report was released, but then Due to the warm weather that began in November, the demand for heating oil has dropped.
According to a survey by S&P Global Platts, analysts expected on average natural gas inventories to fall by 28 billion cubic feet last week (as of 10/30).
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