Oil prices fall on concerns about weaker demand outweigh the data on US inventories

Oil prices fell on Thursday amid fears that the US economic recovery is slowing due to the coronavirus, while a second wave of COVID-19 cases in Europe has led to travel restrictions in a number of countries.

Futures for Brent crude oil fell 0.81% to $ 41.43 a barrel by 09:50 Moscow time, while WTI futures shed 0.93% to $ 39.56 a barrel.

Oil rose in price on Wednesday after the Energy Information Administration (EIA) reported a 1.6 million barrels drop in US oil inventories in the week ended September 18 to 494.4 million barrels.

However, then oil prices fell after the release of data from financial company Markit, which showed that the PMI index, reflecting the activity in the service sector of the US economy, according to preliminary calculations, in September fell to 54.6 points from 55.0 points a month earlier.

“Oil prices are dropping as there is a lot of stock for immediate delivery”

Jeffrey Halley of OANDA

Meanwhile, there are concerns about the resumption of oil exports from Libya, as it is unclear how quickly the country will be able to increase production. Libyan National Oil Corp is aiming to increase production to 260,000 barrels per day by next week.

Iraqi Oil Minister Ihsan Abdul Jabbar said Thursday he was waiting for an agreement with OPEC + that would increase Iraqi oil exports, state news agency INA said Thursday.

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