On Thursday, crude oil prices went down as OPEC’s pessimistic forecast on 2020 demand offset the report of declining US crude inventories and an increase in fuel demand.
At 06.47 GMT, Brent crude oil futures slipped by 0.6% or 26 cents to USD45.17/barrel after raising 2% in the previous session. Likewise, the US WTI also lost 0.6% or 25 cents to USD42.42/barrel after jumping by 2.6% on Wednesday.
In its monthly report, the Organization of the Petroleum Exporting Countries (OPEC) estimated that in 2020, the global oil demand would fall by 9.06 million bpd, more than its July prediction of a 8.95 million bpd loss.
OPEC’s pessimistic view weighed down on demand outlook, even offsetting the official data regarding US crude stockpiles and consumption.
Other than that, some analysts opined that the prices might also be dragged down by the increasing uncertainty over a stalemate in Washington on a stimulus package to support recovery from the coronavirus pandemic.
Data from the US Energy Information Administration (EIA) showed that in the week ended August 7, the country’s crude oil inventories nosedived by 4.5 million barrels. Analysts in a Reuters poll only saw a 2.9 million barrel slump.
The EIA also said that US fuel demand hit the highest level since March at 19.37 million bpd last week.
Previously on Tuesday, the EIA adjusted down the US oil production for this year. Crude output was seen to plunge by 990,000 bpd to 11.26 million bpd. In June, the EIA only estimated a 600,000 bpd decline.
