Oil Rally Halts as Oil Stockpiles Increase – 10 September 2020

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The American Petroleum Institute reported that crude oil stockpiles increased by 2.9 million barrels in the week ending September 4, breaking a six-week gaining streak and signaling a fall in the global demand. 

Crude OilYesterday, the oil markets rallied, recovering from a previous loss that was caused by the Saudi company Aramco’s decision to cut its Arab light oil price.

The West Texas Intermediate crude oil futures climbed 3.51 percent during the session, closing at the 38.05 level. In the same way, the Brent oil futures gained 2.54 percent, closing the session at the 40.79 level.

Energy Intelligence reported that compliance with the OPEC+ supply cuts deal climbed to 103 percent last month, adding that the alliance members combined supply went up by 1.3 million barrels per day.

The American Petroleum Institute reported that crude oil stockpiles increased by 2.9 million barrels in the week ending September 4, breaking a six-week gaining streak and signaling a fall in the global demand. The data surprised the markets, as the analysts foresaw a crude oil inventories draw of 1.335 million barrels.

By 7:08 GMT the West Texas Intermediate crude oil futures dropped by 0.50 percent, falling to the 37.86 level. Additionally, the Brent oil futures dropped by 0.32 percent, falling to the 40.66 level.

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US stock markets also rallied, recovering from a three-session selloff of technology sector stocks and after dip-buyers took advantage of the late weakness of the tech sector companies in the financial markets. The Dow Jones Industrial Average gained 1.60 percent during the session, closing at the 27,940.47 level, while the Nasdaq 100 climbed 2.96 percent, closing the session at the 11,395.85 level and having its best day since April.

The S&P 500 advanced 2.01 percent during the session, closing at the  3,398.96 level, while the NYSE Composite climbed 1.56 percent, closing the session at the 12,885.80 level.

At the moment, there are 28,030,286 total reported coronavirus cases around the world, as well as 908,054 total deaths. In the United States, there are 6,549,475 confirmed cases as well as a death toll of 195,239, followed by India, Brazil, and Russia.

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