Oil falls after U.S. inventory build feeds oversupply fears
By Yuka Obayashi TOKYO (Reuters) - Oil prices fell on Wednesday after a surprise climb in U.S. crude stockpiles added to concerns about a global supply glut as a spike in global COVID-19 cases fuels demand fears and production returns in Libya.
By Yuka Obayashi
TOKYO (Reuters) - Oil prices fell on Wednesday after a surprise climb in U.S. crude stockpiles added to concerns about a global supply glut as a spike in global COVID-19 cases fuels demand fears and production returns in Libya.
Brent crude futures
Both benchmarks gained the previous session.
Crude inventories rose by 584,000 barrels in the week to Oct. 16 to about 490.6 million barrels, data from industry group the American Petroleum Institute showed, compared with analysts' expectations in a Reuters poll for a draw of 1 million barrels.
Adding to pressure, worldwide COVID-19 cases crossed 40 million on Tuesday, with some parts of Europe imposing renewed lockdown measures.
"Higher U.S. inventory fuelled concerns of oversupply at a time when the coronavirus cases are rising worldwide, which could hamper a recovery in fuel demand," said Satoru Yoshida, a commodity analyst with Rakuten Securities.
On the supply side, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, together known as OPEC+, plan on scaling back their production cuts in January from a current 7.7 million barrels per day (bpd) to roughly 5.7 million bpd in January.
OPEC member Libya, which is exempt from the cuts, is also ramping up production after armed conflict shut almost all of the country's output in January, pumping more oil into an oversupplied market.
Still, Russia's energy minister said on Tuesday it was too early to discuss the future of global oil production curbs beyond December, less than a week after saying plans to reduce the output restrictions should proceed.
"Hopes for economic stimulus in the United States and other countries to combat pandemic-led slump in consumption are expected to cap losses but planned reduction in output cuts by OPEC+ will also limit any future gains," Yoshida said.
The White House and Democrats in the U.S. Congress moved closer to agreement on a new coronavirus relief package on Tuesday as President Donald Trump said he was willing to accept a large aid bill despite opposition from his own Republican Party.
(Reporting by Yuka Obayashi; editing by Richard Pullin)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.
MUNICH/FRANKFURT (Reuters) - German police fired water cannon during an anti-lockdown rally in Frankfurt on Saturday and eventually broke up the gathering as rules like wearing masks and socially distancing were not observed. About 600 people from the loosely organized Querdenker movement that opposes the government’s measures to halt the rise in coronavirus infections took to the streets in Frankfurt.
By Christian Hartmann PARIS (Reuters) - A silk shoe that belonged to Marie Antoinette, the last queen of France who was executed during the French Revolution, will go up for auction on Sunday - with a starting price of 10,000 euros ($11,800).
By Juarawee Kittisilpa and Matthew Tostevin BANGKOK (Reuters) - Thailand's King Maha Vajiralongkorn told well-wishers of the importance of unity as he marked the opening of a new railway line on Saturday, after thousands of protesters had turned their backs on his motorcade as it passed through central Bangkok. Around 2,500 demonstrators had gathered at the capital's Democracy Monument in the latest of months of protests against Prime Minister Prayuth Chan-ocha, demanding changes to the constitution as well as reforms of the monarchy. The protesters draped the centrepiece of the monument, which has become a rallying point for the protests, in a cloth covered in grievances and insults