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Market News Crude oil plunges by more than 5% as inventories soar by 4.3 million barrels; prospects for a rebound of the epidemic are bleak

Crude oil plunges by more than 5% as inventories soar by 4.3 million barrels; prospects for a rebound of the epidemic are bleak

Crude oil futures prices fell, and WTI crude oil recorded its lowest closing price since June. According to official data, last week's domestic crude oil inventories in the United States recorded the largest weekly increase since July, and the surge in the number of confirmed COVID-19 cases has led the market to anticipate a decline in energy demand.

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2020-10-29
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    December WTI crude oil futures prices fell 2.18 US dollars or 5.5% to close at 37.39 US dollars per barrel, which was the lowest closing contract month since October 2; December Brent crude oil futures prices fell 2.08 US dollars or 5.1% to close at 39.12 per barrel US dollar, the lowest closing price since June 12.


EIA reported that gasoline supplies fell by 900,000 barrels and distillate inventories fell by 4.5 million barrels last week; US crude oil inventories increased by 4.3 million barrels as of October 23, the largest weekly increase since July.


Hurricane may hit the Mexico Gulf shortly

Sami Yahya, senior analyst at S&P Global Platts' oil supply and production division, said, “2020 is the most devastated year of the Atlantic hurricane season in the past 12 years.”


On a year-on-year comparison, the 2008 hurricane season reduced nearly 140,000 barrels of crude oil per day, while in 2020, it reduced slightly more than 110,000 barrels of crude oil. "The 2005 Atlantic hurricane season interrupted production and cut about 220,000 barrels per day on an annual basis. The reduction in 2020 is half of the 2005 level."


Energy traders are concerned about the trend of Hurricane Zeta in the Gulf of Mexico and it is expected that it will make landfall in southern Louisiana this evening local time.
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