Following the International Energy Agency’s cut on forecasts for global oil demand, oil remained steady close to $43 a barrel. Upon the dollar trade being lower once again, losses were limited. Russia’s energy minister remarked that the market is stabilizing and that OPEC plans no sharp moves. Futures in New York edged higher after the agency reduced its estimates for almost every quarter through to the end of next year, citing muted outlook for air travel.
US crude inventories declined for a third week, while prices have been at a high trade for roughly five months among recent sessions. Gasoline in the USA is observing recovery but the oil product scenario is more mixed across the globe in view of COVID-19. The IEA’s report followed those from OPEC and the US Energy Information Administration earlier in the week, both of which included revised views on U.S. oil production.
Saxo Bank head of commodities strategy Ole Hansen said, “Three oil market reports are driving one conclusion: caution. We are not out of the woods just yet and the three all highlight the continued uncertainty in predicting the short-to near-term future.”
With ongoing weak demand, a company majority-owned by Royal Dutch Shell Plc’s said it will shut a 110,000 barrel-a-day refinery in the Philippines. On Wednesday, America’s biggest fuel maker said it plans to turn one of its refineries into a renewables plant.
Iranian forces used two ships and a helicopter to board a tanker called the Wila in international waters, U.S. Central Command said in a tweet on Wednesday. The ship was most recently near the Strait of Hormuz. It was released and the U.S. military was not involved in anything other than monitoring, Reuters reported, citing an unidentified official with knowledge of the matter.