Mid-Week Review – July 22, 2020
With oil cheap, Arab states cannot balance their books
Peak demand for oil may still be years away, but covid-19 has given the Middle East and north Africa a taste of the future. Prices of the black stuff plummeted as countries went into lockdown. The region’s energy exporters are expected to earn about half as much oil revenue this year as they did in 2019; the IMF reckons their economies will shrink by 7.3%. Click here to read more from the Economist.
Oil jumps nearly 3% to highest level since March on vaccine hopes, EU deal
Oil rose on Tuesday, helped by positive news about vaccine trials and an EU stimulus deal, taking prices to levels last seen when an oil price war erupted in early March between Russia and Saudi Arabia. Click here to read more from CNBC.
How long will the fair price of oil stay around $40?
The price of a barrel of WTI Crude Oil has hovered about two dollars either side of $40 per barrel since June 16, 2020. Almost five weeks inside of a relatively narrow price band means the forces of supply and demand in the crude oil markets have found equilibrium, at least for the time being. Click here to read more from Forbes.
Oil prices slip as U.S. inventories and virus fears grow
Oil prices fell on Wednesday as industry data showed a bigger than expected inventory build in the United States, where a surge in coronavirus cases could further dent fuel demand in the world’s biggest oil consumer. Click here to read more from Reuters.
This article is part of Daily Market News & Insights
Tagged: API, Build, coronavirus, lockdowns
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