On Wednesday, oil prices climbed up after experiencing a fall on Tuesday.
As of 00.16 GMT, the US WTI for September rose by 0.2% to USD41.7/barrel while Brent crude oil futures for October settlement edged up by 0.3% to USD44.62/barrel after falling by 1.1% yesterday.
On Tuesday, oil prices slipped as the concern over the coronavirus impact on the economy offset the impact of the report from the American Petroleum Institute (API) about a 4 million barrels in a decrease of US crude oil inventories. The inventories at the Cushing storage hub rose by 1.1 million barrels.
Yesterday, Florida posted another day of record death numbers due to the coronavirus while New Zealand’s biggest city reimposed lockdown following a fresh outbreak of infections.
Looking ahead, the outlook for the global oil market is still bleak as the recovery of demand is still uncertain, combined with the returns of some volumes from the Organization of the Petroleum Exporting Countries and its allies (OPEC+) to the market.
US shale producers slashed 20% of well costs year-on-year, signaling a bearish market if they have found a way to keep producing below USD40/barrel, noted Macquarie Group Ltd.
US Energy Information Administration (EIA)’s expectations on the US crude oil production for 2020 was down to 11.26 million bpd from July’s prediction of 11.63 million bpd.
