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Brent Crude adds 40 cents, trading at 43.34 a barrel


Syed Umarullah HussainiWeb Editor

31st July, 2020
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Oil

On Friday oil prices gained after three week lows, as US witnessed decline in the novel coronavirus cases.

According to the details, Brent crude was up by 40 cents, or 0.9%, at $43.34 a barrel.

On Thursday, Brent closed down 1.9% but had recovered much of the ground lost from the lowest level since July 10.

U.S. crude gained 35 cents, or 0.9%, to $40.27 after dropping 3.3% the previous session, again recovering from lows not seen since July 10.

That leaves Brent on track for a fourth month of gains, while U.S. crude is heading for a third consecutive month of increases.

Moreover OPEC+, and its allies, collectively plan to increase production from Saturday, adding about 1.5 million barrels per day to global supply.

Economists are of the view that “Despite the resilient and range-bound nature of oil pricing over recent weeks, plateauing global demand and increasing OPEC+ output raises the question of whether the market can absorb additional barrels,”

Asian Trading

Nifty futures were trading 62.85 points or 0.57 per cent up at 11,147.50 on Singaporean Exchange.

The Hang Seng index in Hong Kong advanced 0.73%.

In Japan, the Nikkei 225 fell 1.32% while the Topix index shed 1.38%.

In overnight trade on Wall Street, S&P500 and Dow Jones ended lower after US economy recorded a worst quarterly plunge of 33 per cent annualized rate in the Apri-Jun quarter.

The Dow Jones Industrial Average fell 0.85 per cent, the S&P 500 lost 0.38 per cent, and the Nasdaq Composite added 0.43 per cent.

A matter not be ignored, globally the economic outlook has dimmed again, with increasing infections of the novel coronavirus raising the risk of renewed lockdowns and threatening any rebound.

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