An oil refinery is put along a highway in Big Spring, Texas.
Spencer Platt | Getty Images
Oil futures fell further on Wednesday after big drops the previous session with Brent sliding below $40 a barrel for the first time since June as Covid-19 the actualities rebounded in several countries.
The biggest global health crisis in a century continues to flare unabated with victims rising in India, Great Britain, Spain and several parts of the United States, where the infection rate has not succeed under control for months.
The outbreak is threatening hopes for a global economic recovery that could impact order for fuels from aviation gas to diesel.
Brent crude was down 16 cents, or 0.4%, at $39.62 a barrel by 0241 GMT after deteriorating more than 5% on Tuesday.
U.S. crude was down 24 cents, or 0.7%, at $36.52 a barrel, having descent nearly 8% in the previous session.
“Stalling demand has been a concern for most in the market for a while (and) it is becoming more noticeable,” ING Economics said in a note.
Record supply cuts by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+ attired in b be committed to helped support prices, but with grim economic figures being reported almost daily, the outlook for need for oil remains bleak.
China’s factory gate prices fell for the seventh straight month in August although at the slowest annual compute since March, suggesting industries in the world’s second-biggest economy continued their recovery from the coronavirus-induced downturn.