Home / Business / Oil prices drop and the demand is expected to be low till at least 2022

Oil prices drop and the demand is expected to be low till at least 2022

Oil prices were dropped on Wednesday after an expected increase in US crude oil inventories, on top of fears that a second coronavirus wave could further damage global oil demand.

International benchmark Brent crude was costing $40.58 per barrel at 0618 GMT for a 0.9% decrease as the cost was $40.96 per barrel on Tuesday.

According to the American Petroleum Institute on Tuesday, crude oil inventories in the US are forecasted to increase by 3.8 million barrels for the week ending June 12.

Coronavirus cases are raising in many states of the US which damages the outlook for oil demand in the biggest oil-consuming country of the world. The International Energy Agency (IEA) reported on Tuesday that oil demand in 2020 is expected to decrease by 8.1 million barrels per day than last year. Decreased demand for jet and kerosene deliveries would also negatively affect total oil demand until at least 2022, IEA stressed.

About actualnews

Check Also

Bolten’s new book might have a negative impact on Trump in his presidential election

John Bolton’s new book, the former national security adviser, may have negative impact to Trump …

Leave a Reply

Your email address will not be published. Required fields are marked *