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Oil prices add to losses as supplies swell amid weak demand
TOKYO: Oil prices extended is reduced on Friday, under pressure coming from a surprise rise in U.T. stockpiles and ongoing weak demand from the coronavirus outbreak.
Brent crude was lower 8 cents, or zero.2%, at $39.98 a barrel by 0110 GMT, after falling almost 2% on Thursday, although U.S. crude seemed to be off by 2 mere cents at $37.28 a good barrel, having fallen 2% in the previous session.
Both key benchmarks were headed for any second week of is reduced.
In the United States, stockpiles went up last week against expectation as refineries slowly returned to operations after production sites had been shut down due to hard thunder storms in the Gulf of Mexico and broader region.
“Crude production will be starting to return carrying out a couple of storms, but a good weak demand outlook along with the start of maintenance period will keep the pressure on engine oil prices,” said Ed Moya, senior market analyzer at OANDA.
Crude inventory in the United States rose 2.zero million barrels last week, in opposition to expectations for a 1.several million-barrel decrease in a Reuters news agency poll.
In a further bearish sign, traders were starting up to book tankers yet again to store crude oil together with diesel, amid a stalled economic recovery as often the COVID-19 pandemic continues unabated.
Onshore storage remains in close proximity to capacity as supplies go on to outpace demand, and so the use of so-called floating storage area is back in vogue as low-priced financing costs and the distributed between contracts for supply now and later months causes it to be favourable for traders to hold oil for later sale made.