Oil steadies, recovery stunded by European lockdowns, US stockbuild

Oil steadies, recovery stunded by European lockdowns, US stockbuild

Oil prices steadiedr on Wednesday, following the previous day’s slump, but the recovery was stunted by fears of a slow recovery in demand due to new pandemic lockdowns in Europe and a build in U.S. crude stocks, Trend reports with reference to Reuters.

Brent crude futures rose 8 cents, or 0.1%, to $60.87 a barrel by 0454 GMT, after tumbling 5.9% and hitting a low of $60.50 the previous day.

West Texas Intermediate (WTI) crude futures climbed 8 cents, or 0.1%, to $57.84 a barrel, having lost 6.2% and touched a low of $57.32 on Tuesday.

Both benchmarks touched their lowest levels since early February on Tuesday and have now fallen nearly 15% from their recent highs earlier this month.

The front-month spread for both Brent and WTI slipped into contango, where front-month contracts are lower than the later months, a sign that demand for prompt crude is declining.

“Investors adjusted positions from Tuesday’s sharp selloff,” said Kazuhiko Saito, chief analyst at commodities broker Fujitomi Co.

“But the market sentiment remained bearish due to growing concerns about demand recovery in the wake of new pandemic curbs in Europe,” he said.

Germany, Europe’s biggest oil consumer, extended its lockdown to April 18, and Chancellor Angela Merkel urged citizens to stay at home for five days over the Easter holiday.

Worries over the pace of the recovery from the pandemic were also heightened after a U.S. health agency said the AstraZeneca Plc vaccine developed with Oxford University may have included outdated information in its data.

“Past patterns, in general, has been for the markets to pare back on initial lockdown announcements but then to recover. However, there are more worries at the moment about a lagged rise in US COVID-19 cases to follow in Europe’s footsteps due to Spring break festive proclivities,” Stephen Innes, chief global market strategist at Axi said in a note.

“So, there is still a chance there could be more pain to come,” he said.

Adding to pressure, U.S. crude oil stocks jumped by 2.9 million barrels in the week to March 19, against analysts’ expectations in a Reuters’ poll for a decline of about 300,000 barrels, according to trading sources citing data from industry group the American Petroleum Institute.

But gasoline stocks fell by 3.7 million barrels, compared with expectations for a build of 1.2 million barrels.

Human rights sanctions on China imposed by the United States, Europe and Britain, which prompted retaliatory sanctions from Beijing, also added to market concerns.

The weakness in oil this week seems to have validated the cautious view expressed by Saudi Arabia at the last OPEC meeting and it increases the probability of yet another rollover of current production levels at next week’s meeting, Axi’s Innes said.

Kazakhstan's revenues from road cargo transportation down
Kazakhstan's revenues from road cargo transportation down
Kazakhstan decreases import of Ukraine-made goods y-o-y
Kazakhstan decreases import of Ukraine-made goods y-o-y
Kazakh national atomic company's subsidiary opens tender to buy compressors
Kazakh national atomic company's subsidiary opens tender to buy compressors
Loading Bars
Latest
Iran's trade turnover with Pakistan shrinks
Brazil registers over 370,000 deaths from COVID-19
5.8-magnitude quake strikes off Japan's Miyagi Prefecture
Iraq reports 6,552 new COVID-19 cases, 970,987 in total
More than 805,000 COVID-19 infections detected worldwide over past 24 hours
5.1-magnitude quake hits 20 km S of Mandraki, Greece
Israel reports 142 new COVID-19 cases, 836,882 in total
Yemen's Houthi rebels say launch drone attack on Saudi air base
India's sports minister tests positive for COVID-19
Weekly review of highlights in Azerbaijan's transport sector
EU to hand over 30 vehicles to Georgia Border Police
Turkish scientist works on drug that can ‘kill COVID-19 in 2 days’
Uzbekistan may start production of its own vaccine against COVID-19 by the end of the year
Russia's Eastwind, Turkmenistan's Turkmensvyaz to sign contract
UK records another 2,206 coronavirus cases, 35 deaths
Iranian official offers upbeat assessment of progress in nuclear talks
Volume of goods transported by Azerbaijan’s vehicles in 2021 disclosed
Indonesia reports 5,041 new COVID-19 cases, 132 new deaths
Global COVID-19 deaths surpass 3 mln - Johns Hopkins University
Geostat reveals volume of Russian exports to Georgia
Solar panel station put into operation in Iran’s Razavi Khorasan Province
New auction to be held for Azerbaijani Finance Ministry's mid-term bonds
Georgia increases import of vehicles from Turkey
Kyrgyzstan imposes restrictive measures at airports
Bahar Azadi gold coin price rebounds in Iran
Foreigners to pass simplified visa procedures for 2021 F1 Azerbaijan Grand Prix
Serbian FM to visit Tehran today
Azerbaijan discloses number of COVID-19 vaccinated citizens
Azerbaijan confirms 2,148 more COVID-19 cases, 2,287 recoveries
Armenia falsified Caucasian Albania temples in Azerbaijan - rep of religious community
Iran to send trade attaché to Azerbaijan
Weekly review of major events in Azerbaijan's oil & gas sector
Azerbaijan shares footage from Jabrayil's Dash Veysalli village (VIDEO)
Armenia strived to create history for itself in Azerbaijan's lands - Head of Albanian-Udi community
Iran reveals COVID-19 data for April 17
Volume of loaded and unloaded cargo in Iran’s Charak port climbs
Azerbaijani oil prices on rise
VICE News report on Armenia's attack on Azerbaijani Barda nominated for award
Weekly review of main events in ICT sector of Azerbaijan
Earnings from fuel savings in Iran paid to investors
Uzbekistan's CCI, Portuguese Industrial Association establish co-op
Buy/sell operations at Iran Mercantile Exchange soar
Rosatom, Uzbekistan working on contract for building nuclear power plant
Turkmenistan to create electronic exchange database
IMF calls on Georgia to reduce capital expenditures in case of lockdown
Russia reports a new high of 9,321 coronavirus cases since March 20
Azerbaijan's Albanian-Udi Christian community members visit ancient temple in Tugh - Trend TV (PHOTO)
OSCE MG should force Armenia to follow terms of trilateral statement - Azerbaijan's Parliament
Weekly review of Azerbaijani currency market
Azerbaijan, Turkic Council discuss creation of joint digital tools
Weekly review of Azerbaijani precious metals market
EU rep should follow int'l law before meeting with separatist in Karabakh - expert
Potential areas of Turkmenistan’s interaction within Visegrad Group+Central Asia framework identified
Georgia reports 1,219 new coronavirus cases for April 17
Georgia holds auction for privatization of state property
Azerbaijani MP talks about spring session of IPA CIS held in Russia's St. Petersburg
Georgia continues to conduct research on Namakhvani HPP
Iran unveils details exports from Maragheh County
Kazakhstan reveals total number of TEU containers shipped along Aktau-Baku feeder line
There have always been good grape varieties in Pirshaghi – white and black Shani - President Aliyev
Participants of Azercell Student Bursary and Internship Programs share their success stories
Iran boosts aluminum ingots production
Azerbaijani police find mortar shells, detonators left by Armenia in Gubadly (VIDEO)
Iran declares amount of loans issued to SMEs
Kazakhstan's revenues from road cargo transportation down
Concept of ensuring security of Afghan section of TAPI signed
Members of Albanian-Udi Christian religious community of Azerbaijan visit liberated Khojavand (PHOTO)
Australia to continue review of COVID vaccinations - health minister
Italian media outlets highlight speech of Azerbaijani president at int'l conference in Baku
Kazakhstan decreases import of Ukraine-made goods y-o-y
Kazakh national atomic company's subsidiary opens tender to buy compressors
Azerbaijan sets up structure to work on urban planning in liberated lands
Kazakhstan's oil & gas company opens tender to develop consolidated time standards
Meeting of EU special rep with so-called "FM of Karabakh" promotes separatism, says Azerbaijani expert
Iranian currency rates for April 17
Iran to increase vaccinations as fourth wave of COVID-19 rises
Iran reaches target uranium enrichment
Oil demand to keep on rising in May, June 2021
Work on provision of electricity to Azerbaijan's liberated Sugovushan nearing completion
Bulgaria sees Georgia as valuable partner
Significant number of Georgian citizens register for employment program in Israel
Kazakhstan’s COVID-19 caseload up by 2,822
Ukraine receives first batch of Pfizer vaccine under COVAX initiative
IMF corrects estimate on Iran's foreign exchange bank reserves
Azerbaijan attracting foreign investments for renewable energy projects
Uzbekistan to open an embassy in Sweden
Global COVID-19 infection rate approaching highest: WHO
Portugal resumes flights to Brazil, Britain
Turkey reports over 63,000 daily COVID-19 cases
EU eyes to provide grants to Georgian non-profit organizations
Israel reports 41 new COVID-19 cases, 836,740 in total
Biden signs order keeping Trump-era refugee cap at 15,000
EU-UK trade plunges after Brexit: Eurostat
UK records another 2,596 coronavirus cases, 34 deaths
UN Security Council approves ceasefire monitors for Libya
North Macedonia vaccinates some 35,000 citizens
Raul Castro resigning from Cuba’s Communist Party
Azerbaijani IT company working on creating new network, server infrastructures
Georgian Economy Ministry to form expert council on Namakhvani HPP
Relations between Russia, Azerbaijan attain degree of strategic alliance - Federation Council Chair of Russian Federal Assembly
All news