Mid-Week Review – October 21, 2020

By Published On: October 21, 2020Categories: Daily Market News & Insights

Oil prices aren’t going anywhere until the election

Oil remains anchored at around $40 per barrel, awaiting a new direction. Coronavirus cases are on the rise and raise new concerns about demand as travel restrictions begin to increase. In the U.S., the market is hoping for federal stimulus but odds look remote until after the election.

Oil prices slip as U.S. inventory build stokes fears of supply glut

Oil prices eased on Wednesday after a surprise build-up in U.S. crude stockpiles stoked concerns about a global supply glut and a spike in global COVID-19 cases fuelled fears of a stalled oil demand recovery.

IMF reveals 2021 forecasts for oil prices and the Middle East economy

The International Monetary Fund downgraded its outlook for Middle East and Central Asian economic recovery, predicting a 4.1% contraction for the region as a whole. The fund does not see oil staging a dramatic recovery next year, forecasting prices in the $40 to $50 range in 2021.

Oil demand growth won’t be saved by petrochemical boom

The safe bet on petrochemicals suddenly became not so safe as demand from industries slumped with COVID-19, and the crash in oil prices added to the pressure on margins. In the United States, petrochemicals supply had exceeded demand even before the pandemic, and the coronavirus further skewed the balance into an oversupply.

This article is part of Daily Market News & Insights

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