Brent oil price is below $40 per barrel

Oil quotations are recovering slightly after a collapse on Wednesday on data on the first in three weeks increase in US stocks and an increase in the incidence of COVID-19 in many countries of the world and the return of quarantine measures, Interfax reports.

"The short-term outlook for the oil market cannot be called favorable, as quarantine measures introduced in Europe will curb demand," says the AxiCorp review.

December Brent futures on London's ICE Futures went up by $0.04 (0.1%) versus Wednesday's close and traded at $39.16 a barrel. Brent lost $2.08 (5.1%) in price on Wednesday, to its lowest level since June 12.

By this time, December futures for WTI were rising in price on the New York Mercantile Exchange NYMEX by $0.1 (0.27%) to $37.49 per barrel. During the previous session, the contract lost $2.18 (5.5%).

The problems of oversupply and lack of reservoir capacity, which are fundamental for the oil market, have not disappeared, experts warn.

“If the current trajectory of demand continues, one should not be surprised at the sharp decline in oil prices in the coming weeks,” Dow Jones quoted the review of AxiCorp.

The US Department of Energy said that in the week that ended on October 23, oil stocks in the country increased by 4.3 million barrels to the highest rate since July.

Oil stocks in Cushing, where oil traded on the NYMEX is stored, fell by 400,000 barrels over the week.

Oil production in the United States last week increased by 1.2 million barrels per day (bpd) up to 11.1 million bpd.

As reported, the Canadian province would lift restrictions on oil production.

Tags: USA, oil production, coronavirus, stocks, price, pandemic, crisis, economy, market

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