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Oil Drops For 3rd Session in a Row, as Travel Ban Weighs

Oil rates are dropping for a third consecutive settlement on Wednesday, losing around 17 percent this week amid continued concerns over fuel demand lowering due to travel and social restrictions, triggered by infection spread. 

oil rates dropPhoto: Reuters

International benchmark for Brent futures eased by 1.33 percent, to $28,24 per barrel, while WTI crude futures lost in value 3.05 percent, to reach $26,04 per barrel at 0840 GMT on Wednesday.

It should be noted, that the first indicator lost 4.3 percent during the the previous settlement on Tuesday, whereas the second eased by 6 percent.

A decline in U.S. inventories of crude, gasoline and distillates, according to the recent reports provided some support to oil rates, but the demand perspective remains dark amid a price war among main producers.

It is also expected, that the fuel demand will contract by about 8 million bpd through Match due to virus epidemic spread.

In an attempt to buoy global economy, the world’s richest nations are ready to offer trillions of dollars of spending to ease the fallout from the Covid-19 outbreak, as well as imposing social limits not seen since WWII.

The effects on oil demand begins to be reflected in official statistics with Japan’s trade bureau reporting about decrease in crude imports into the world’s third-largest economy by 9 percent in February at annual terms.

Source: Reuters