US COVID-19 New Lockdowns Dim Hopes for Gasoline Demand Recovery

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A report said yesterday that there had been fresh Coronavirus lockdowns in the United States making it difficult for a rise in the demand for gasoline. 

The report by Hellenic Shipping News said the market is also in a holding pattern ahead of a meeting on July 15 of the market monitoring panel of the Organization of the Petroleum Exporting Countries (OPEC) and its allies.

Brent crude futures were up 5 cents, or 0.12%, to $43.34 by 1139 GMT, after gaining 0.5% on Wednesday, while U.S. West Texas Intermediate (WTI) crude futures dipped 14 cents, or 0.3%, to $40.76, after rising 0.7% the previous day.

“Support will disappear after this week as coronavirus cases are surging in several U.S. states,” the report quoted Tamas Varga at PVM Oil Associates, who added that a fall in prices was likely. Data from the U.S. Energy Information Administration showed U.S. gasoline stockpiles fell by 4.8 million barrels last week, much more than analysts expected, as demand hit its highest level since March 20.

But a spike in coronavirus cases across several U.S. states raised the prospect of renewed lockdowns that would likely dent any sustained recovery in fuel demand, the report said. That kept the benchmark crude contracts in tight ranges this week, although holding above $40 a barrel.

U.S. gasoline demand was falling in areas where lockdowns were being reinstated, although on the East Coast, where coronavirus infections were under control, it was recovering well, Lachlan Shaw, head of commodity research at National Australia Bank, said.

The United States reported more than 60,000 new COVID-19 cases on Wednesday, the biggest increase reported by a country in a single day. Libya, whose ports have been blockaded since January, is trying to resume exports after the state oil firm lifted force majeure at its Es Sider oil terminal on Wednesday. However, a tanker was prevented from entering the port.

US COVID-19 New Lockdowns Dim Hopes for Gasoline Demand Recovery
A report said yesterday that there had been fresh Coronavirus lockdowns in the United States making it difficult for a rise in the demand for gasoline. 

The report by Hellenic Shipping News said the market is also in a holding pattern ahead of a meeting on July 15 of the market monitoring panel of the Organization of the Petroleum Exporting Countries (OPEC) and its allies.

Brent crude futures were up 5 cents, or 0.12%, to $43.34 by 1139 GMT, after gaining 0.5% on Wednesday, while U.S. West Texas Intermediate (WTI) crude futures dipped 14 cents, or 0.3%, to $40.76, after rising 0.7% the previous day.

“Support will disappear after this week as coronavirus cases are surging in several U.S. states,” the report quoted Tamas Varga at PVM Oil Associates, who added that a fall in prices was likely. Data from the U.S. Energy Information Administration showed U.S. gasoline stockpiles fell by 4.8 million barrels last week, much more than analysts expected, as demand hit its highest level since March 20.

But a spike in coronavirus cases across several U.S. states raised the prospect of renewed lockdowns that would likely dent any sustained recovery in fuel demand, the report said. That kept the benchmark crude contracts in tight ranges this week, although holding above $40 a barrel.

U.S. gasoline demand was falling in areas where lockdowns were being reinstated, although on the East Coast, where coronavirus infections were under control, it was recovering well, Lachlan Shaw, head of commodity research at National Australia Bank, said.

The United States reported more than 60,000 new COVID-19 cases on Wednesday, the biggest increase reported by a country in a single day. Libya, whose ports have been blockaded since January, is trying to resume exports after the state oil firm lifted force majeure at its Es Sider oil terminal on Wednesday. However, a tanker was prevented from entering the port.

Chibisi Ohakah, Abuja

Chibisi Ohakah, Abuja


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