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Oil Futures Settle Notably Lower On Demand Worries

Oil Futures Settle Notably Lower On Demand Worries

Crude oil futures settled notably lower on Thursday amid worries about outlook for energy demand due to a surge in coronavirus cases in several countries.

The return of output in Mexico also weighed on oil prices. Pemex said it has restored nearly 20% of the more than 400,000 bpd in oil production it lost due to a fire that erupted on an offshore platform on Sunday.

West Texas Intermediate Crude oil futures for October ended down by $0.94 or about 1.4% at $67.42 a barrel.

WTI futures had gained about 1.2% on Wednesday after data from Energy Information Administration (EIA) showed crude inventories in the U.S. fell by about 3 million barrels in the week ended August 21, falling for a third straight week.

Brent crude futures are currently down $1.03 or 1.45% at $70.25 a barrel.

Meanwhile, according to reports, Royal Dutch Shell and Chevron have started evacuating non-essential personnel from offshore U.S. Gulf of Mexico platforms ahead of a storm expected to enter the Gulf this weekend.

According to the National Hurricane Center, the storm could become a major hurricane and strike the U.S. Gulf Coast by Sunday.

The material has been provided by InstaForex Company – www.instaforex.com