Oil prices are taking their cues from Mother Nature as two storms bear down on the Gulf of Mexico. Half of the region’s production has been shut down, though gains will be limited by the threat of a second prolonged COVID wave. WTI Crude is $42.77; Brent is $44.84.
Oil fell as the pandemic clouds demand outlook. Federal Reserve and OPEC+ cast doubt on the outlook for the global economy and oil demand, respectively. Still, prices are set to eke out a gain for the week after data earlier showed American crude and gasoline stockpiles shrank. WTI Crude is $42.20; Brent is $44.23.
Futures fell about 1% below $43 a barrel amid a broader slide in equities after minutes from the Fed said the pandemic would weigh heavily on economic activity, repeating its view that the recovery would depend on containment of the virus. WTI Crude is $42.45; Brent is $44.81.
Some analysts are forecasting Brent to rise from an average of $44 per barrel this year to an average of $51 per barrel in 2021. They have highlighted that market fundamentals are positive and said it expects a sustained drawdown in crude and fuel inventories over the coming 18 to 24 months. WTI Crude is $42.67; Brent is $45.28.
Oil has held mainly above $40 in recent weeks as weakness in the dollar has helped support prices. The market is still facing headwinds, including rising virus infections and fraying U.S.-China tensions. WTI Crude is $41.92; Brent is $44.63.
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