Oil Falls amid a Rise in Concern over Covid-19 Second Wave Outbreak

Oil Price edged lower in early trading session on Wednesday on concern about a possible second wave of coronavirus cases in countries relaxing lockdown measures and a rise in U.S. crude inventories, data showed.

 

As of 10.38 local time in Thailand, the price of WTI was at $25.56/bbl, dropped $0.22/bbl or 0.85%. Meanwhile, Brent was traded at $29.50/bbl, decreased $0.48/bbl or 1.60%.

 

Second wave of covid-19 outbreak have been reported in South Korea and in China, where the health crisis started before spreading across the world. The resurgence could pull down oil demand once again.

 

The collapse in global consumption amid coronavirus pandemic has forced many oil production countries to cut the output. On Monday, Saudi Arabia released a plan to addition a million barrels per day cut by next month, bringing output down to 7.5 million bpd.

 

Meanwhile, in the United States, crude oil storages rose by 7.6 million barrels last week to 526.2 million barrels, against analysts’ expectations for an increase of 4.1 million barrels.