On Thursday the gain on oil extended their gains, with the increase in the price of the oil. All the producers are trying to cut down the production to be able to cope up with the loss that has been incurred in the past few days. The lapse in the demand of oil occurred with the major outbreak of the coronavirus all across the world. Brent crude (LCOc1) was up 33 cents, or 1.6%, at $20.70 a barrel by 0254 GMT after rising more than 5% on Wednesday.
U.S. West Texas Intermediate (WTI) futures were up 28 cents, or more than 2%, at $14.06 a barrel, having risen around a fifth in the previous session. U.S. crude futures fell to below minus $40 on Monday on concerns that buyers were running out of storage space to make deliveries.
In the United States, the world’s biggest oil producer, Oklahoma’s energy regulator said companies could shut wells without losing their leases, an initial victory for struggling U.S. producers seeking relief from the market crash after a surge in production. The state is the fourth-largest oil producer in the U.S.
As oil consumption collapses, the Organization of the Petroleum Exporting Countries (OPEC), Russia, and other producers, a group known as OPEC+, are set to cut supply by a record 9.7 million barrels per day (BPD) from May 1. Those cuts may have to be extended to match the shortfall in demand, analysts said.
Loadings of Russia’s Urals crude grade from the Baltic Sea in the first 10 days of May are set to be 36% lower than the same period in April, indicating the country is complying with the cuts.
U.S. stockpiles of crude, gasoline, and distillate fuels rose last week as inventory is building around the world, the Energy Information Administration said on Wednesday.
Crude inventories rose by 15 million barrels in the week to April 17 to 518.6 million barrels, near a record of 535 million barrels set in 2017.
Inventories are expected to keep rising, due to the collapse in demand from the viral outbreak and aggressive response by refiners to cut processing.
In Japan, the world’s third-biggest economy, data released on Thursday showed services shrank at the most on record while manufacturers also shut down operations.
The coronavirus sweeping across the world has infected more than 2.5 million people and killed nearly 180,000 people, forcing governments to impose strict lockdowns and shutter industries while pushing central banks to unleash unparalleled stimulus.
*the facts and figure and minute details have been taken from investigating.com
Mashum Mollah is the feature writer of Search Engine Magazine and an SEO Analyst at Real Wealth Business. Over the last 3 years, He has successfully developed and implemented online marketing, SEO, and conversion campaigns for 50+ businesses of all sizes. He is the co-founder of Social Media Magazine.