Oil spills when US crude collides with COVID-19 increase, strong dollar

  • U.S. crude stocks to fall by January 2020 – IAA
  • The U.S. dollar index has been positive since the beginning of April
  • Delta is expanding in areas with low COVID-19 vaccine coverage – World Health Organization

NEW YORK, Aug. 18 (Reuters) – Oil prices fell sharply on Wednesday after four days as COVID-19 issues rose sharply around the world and investors’ concerns about oil prices plummeted.

Brent crude fell to $ 68.77 at 11 cents EDIT (1547 GMT) and 25 cents per barrel. The U.S. WTI crude oil cost 41 cents to $ 66.17 a barrel.

The US Dollar Index (.DXY) has hit a record high of 0.1% since April. The raw material is often converted to dollars because the commodity is sold in dollars; When the US dollar is collected, oil makes it more expensive for foreign buyers.

The market fell from 3.2 million barrels to 435.5 million barrels last week, the lowest since expectations in January 2020. Gasoline stocks, on the other hand, have been a bit of a concern about the coronavirus, and the market has grown slightly.

However, oil prices have plummeted for days, both in the United States and around the world. Many countries have re-introduced travel restrictions and air traffic has eased in recent weeks. Read more

The total U.S. product market for the four-week period – demand – was 20.8 million barrels per day, in line with the 2019 pre-coronavirus standards. Fuel supply was 9.5 million BPD, just 1% below 2019 standards. . U.S. demand for oil has steadily increased year-round as consumers continue to be vaccinated.

“The demand for gasoline was very strong, and we were deep at the time to see such numbers,” said John Kilduff, a partner at Capital LLC in New York. The raw material will be very supportive of the market. ”

Report by David Gaffen in New York; Additional reports by Laura Sanikoline New York, Tokyo Aaron ld Ledrick and London Dimitri Zdandanikov; Edited by Margurita Choi

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