On Wednesday, oil prices are falling on a new rise in the incidence of COVID-19 in Asia, which calls into question the prospects for a recovery in global energy demand, Interfax reports.
By 8:20 a.m. Kyiv time, June futures for Brent fell in price on the London ICE Futures exchange by $0.48 (0.72%) to $66.09 per barrel. On Tuesday, Brent fell in price by $0.48 (0.7%) to $66.57 per barrel.
By this time, June futures for WTI were cheaper in electronic trading on the New York Mercantile Exchange (NYMEX) by $0.52 (0.83%) to $62.15 per barrel. During the previous session, the contract fell by $0.76 (1.2%) to $62.67 per barrel.
Indian authorities have announced new quarantine measures in several cities, including New Delhi. In some Japanese prefectures, an emergency regime may be introduced due to the increase in the number of infections - even though the Olympic Games are to begin in the country in just three months.
“The recovery in global oil demand will not be steady, and we will see these constraints from time to time,” Daniel Hines, commodities analyst at Australia & New Zealand Banking Group, told Bloomberg. "However, in general, the demand for oil in large regions continues to increase.
According to the American Petroleum Institute (API), published on Tuesday, US oil inventories increased by 436 thousand last week. If the data is confirmed by an official report, the increase in US inventories will be the first in four weeks.
As reported, the US imposed sanctions against state-owned enterprises of Belarus, including Belneftekhim and Naftan.