Economy

Oil prices volatile as virus saps demand

Oil prices volatile as virus saps demand”

As a support measure for US drillers, the administration plans to initially purchase 30 million barrels for the Strategic Petroleum Reserve in May and June, and buy as much as 77 million barrels of oil in total over time.

U.S crude oil prices edged higher on Friday, extending gains after a 24 per cent jump the previous day, buoyed by hints from U.S. President Donald Trump he may intervene in the price war between Saudi Arabia and Russian Federation at an "appropriate time".

Trump said on Thursday that he would act on the price war at the appropriate time, saying low gasoline prices were good for US consumers even though they are hurting the industry.

Texas's main oil regulator is weighing for the first time in almost half a century whether the state should cut crude output, a move that would have an enormous business and political impact.

The more active May contract slid $3.28 to $22.63 a barrel.Brent for May settlement fell $1.49 to settle at $26.98 a barrel on the ICE Futures Europe exchange.

U.S. West Texas International and international-benchmark Brent crude oil finished sharply lower on Friday, almost erasing all of the previous session's record one day gains.

In the last several years, shale operators using the innovative hydraulic fracturing, or fracking, technique, have boosted US oil output to almost 13 million barrels per day, making it the world's largest producer.

Even if cuts are agreed at some point, they "alone will not be enough to see prices fully recover the lost ground over the last month", said Peter Kiernan, energy analyst from the Economist Intelligence Unit. "At the appropriate time I'll get involved". The American Exploration and Production Council said in a March 12 letter that it needs Trump's help in ensuring "restoration of a functioning, stable, global market for oil". The price war comes during a time of severely reduced global demand due to the spread of the coronavirus, and the oversupply and demand strain have pushed crude prices to near 20-year lows this week.



Like this

loading...
loading...

Latest


23 March 2020
Vice President Pence, wife test negative for COVID-19
Pence has been the Trump administration's point person on coordinating the government's response to the coronavirus pandemic. This press conference comes as positive cases of coronavirus continue to increase in the US and around the world.

23 March 2020
Tristan Thompson and ex-girlfriend Khloé Kardashian reportedly "quarantining together"
Him and I have our own relationship and then Tristan and True have theirs, and I will never come in between that. One insider told Us Weekly magazine: "Khloé, Tristan and True are quarantining together". "Oh, it's hard.

23 March 2020
Realme Narzo 10, Narzo 10A to debut on March 26, specs revealed
According to him, the series will start at around Rs 10,000 - which makes the hierarchy of Realme phones really confusing. Realme has also noted that the two phones will pack "next-level camera", "A Class processor", and "remarkable battery".

23 March 2020
Harvey Weinstein tests positive for coronavirus
That's now on hold because of the coronavirus crisis that has shuttered courthouses and limited travel. Weinstein was sent to Wende, where the prison system operates an intake center for new state inmates.

23 March 2020
Colombia prison riot kills at least 23 amid coronavirus fears, officials say
She also asserted, "There is not one infection nor any prisoner or custodial or administrative staffer who has coronavirus". A pall of black smoke hung over the prison Sunday as family members were kept at a distance by a cordon of riot police.

23 March 2020
Check out Project xCloud running on PC
Microsoft also recently updated its xCloud server blades to include eight Xbox One S consoles in a single server instance. The ongoing xCloud preview in North America, UK, Korea and Canada now allows users to stream games to Android devices.

23 March 2020
Tokyo 2020: International Olympic Committee sets deadline for decision on Games
In the United States , sports officials are facing a growing rebellion inside their ranks about the Games. The source also predicted that a possible long delay may prompt complaints from older athletes.

23 March 2020
Trump deploys medical stations for US Covid-19 hotspots
So far, there have been 186,000 masks, 84,000 face shields and 68,000 surgical gowns delivered to New York, Trump said. A worker at Life Care Center in Kirkland wears a mask as she leaves the facility Friday evening.

23 March 2020
Designer Christian Siriano will make face masks for NY health-care workers
The Council of Fashion Designers of America has yet to make a similar call to action, and it's unclear if it has plans to do so. Designer Christian Siriano: 'It is not for fashion, it's to help people'.

23 March 2020
Amazon temporarily raises overtime pay for warehouse workers
The company will also increase its minimum wage by $ 2 an hour until April, the company announced earlier this week. Key rival Walmart Inc.is also hiring workers and doling out bonuses to staff helping it meet demand.