Oil slumps in first 4 sessions

The crude oil futures contract retreated sharply on Thursday (26/03), as concerns increased about the decline in energy demand due to pandemic COVID-19 on global oil prices recorded received first decline in 4 sessions, MarketWatch reported.

“Oil prices have lost 60% since the beginning of 2020 due to the outbreak COVID-19 with war oil prices tensions between Saudi Arabia and Russia,” Lukman Otunuga, expert senior researcher at FXTM , identify. “With the current agreement between the Organization of Petroleum Exporting Countries (OPEC), along with allies like Russia will expire on 31/03, perhaps there will be more damage to the goods when the OPEC members to increase production “.

Ending the trading session on Thursday, light, sweet crude contract on WTI Nymex May delivery fell 1.89 USD (equivalent to 7.7%) to 22.60 USD / barrel.

Brent crude contract for May on the London Metal Exchange lost 1.05 USD (or 3.8%) was 26.34 USD / barrel – the lowest closing level since 18/03/2020, the data from Dow Jones Market shows. Both 2 and Brent contract rose WTI oil are consecutive three previous sessions.

Remarks from CEO International Energy Agency (IEA), Fatih Birol, in an online event by the Council of the Atlantic (Atlantic Council) held on Thursday increased the prospects devastating global oil demand, Bloomberg news reported.

Specifically, Mr. Birol said that the impact of excess supply will be felt for years to come, and with 3 billion people worldwide are restricted travel, oil demand could fall by 20 million barrels / day .

Meanwhile, the US Energy Department showed 19/03 day tenders for the first part of the plan to buy 77 million barrels of oil stockpiles Strategic Petroleum (SPR) when administration Donald Trump President can not win funding for the acquisition of the National Assembly, Bloomberg News said. After falling oil prices, Mr. Trump announced on 13/03 that the US would buy large amounts of oil to fill the SPR.

Also during the session on Thursday, gasoline delivery in April contract 0.6% to 54.38 cents undo / gallon. While, heating oil delivery contract fell 4.3% in April to US $ 1.0503 / gallon.

The natural gas contract decline on Thursday when the agency US Energy Information Administration (EIA) reported that natural gas supplies fell 29 billion cubic feet in the week ended 03/20/2020, the higher one slightly compared with forecasts for 27 billion cubic feet from the participating analysts polled by Platts.

Natural gas delivery contract lost 1.3% in April was 1,637 USD / MMBTU.

“Oil prices have lost 60% since the beginning of 2020 due to the outbreak COVID-19 with war oil prices tensions between Saudi Arabia and Russia,” Lukman Otunuga, expert senior researcher at FXTM , identify. “With the current agreement between the Organization of Petroleum Exporting Countries (OPEC), along with allies like Russia will expire on 31/03, perhaps there will be more damage to the goods when the OPEC members to increase production “.

An Tran