Oil drops below $35 on more pandemic lockdowns, Libyan supply

Oil fell for a fourth day as tightened lockdowns in Europe to curb a resurgence of coronavirus stoked demand concerns and as Libya ramped up its production toward 1 million barrels a day.

Representational photo of Crude oil storage tanks (REUTERS)
Representational photo of Crude oil storage tanks

Futures in New York dropped as much as 4.8%, after falling 1.1% on Friday to round off its worst month since March. U.K. Prime Minister Boris Johnson announced a partial lockdown for England over the weekend, with most countries in western Europe already facing tougher restrictions. The pace of infections in the U.S. slowed on Saturday after two straight days of national records.

Also Read : Oil set for worst month since March as coronavirus revival cuts travel

Libya’s daily crude output has reached 800,000 barrels and the country is targeting 1.3 million by the beginning of 2021, Mustafa Sanalla, the chairman of state-run National Oil Corp., said in an interview Saturday, as a truce in the nation’s civil war allows the state energy firm to ramp up operations at previously idled fields and ports.

Also check these Vehicles

Find more Cars
Mahindra Ekuv100 (HT Auto photo)
₹ 8.25 - 10 Lakhs* *Expected Price
View Details
Kia Sonet (HT Auto photo)
₹ 6.79 - 13.35 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Mercedes-benz Amg Glc43 Coupe (HT Auto photo)
₹ 83.10 Lakhs* **Ex-showroom price
Add to compare
Check latest offers
Toyota Glanza (HT Auto photo)
₹ 7.18 - 9.45 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Land Rover Range Rover Sport (HT Auto photo)
₹ 1.64 - 1.84 Cr* *Ex-showroom price
Add to compare
Check latest offers
Porsche 911 (HT Auto photo)
₹ 1.64 - 3.08 Cr* *Ex-showroom price
Add to compare
Check latest offers

Benchmark Brent crude fell 10% in the five days through Friday as daily Covid-19 cases hit a record in the U.S. and nations including France and Germany announced new lockdowns. The U.K. followed suit on Saturday.

Still, the world’s biggest independent oil trader Vitol Group is inclined to see recent price moves as just a “speed bump", with tightening global inventories likely to cushion the downside.

Also Read : India's October gasoline, gasoil sales exceed pre-coronavirus levels

Drilling rigs targeting crude oil in the U.S. rose by 10 to 221 in the past week, according to Baker Hughes, the sixth straight weekly increase, suggesting activity is picking up despite risks to the demand recovery from the pandemic.

A potentially pivotal week lies ahead for the market with the U.S. presidential election on Tuesday as well as the latest Federal Reserve policy meeting starting Wednesday. Traders are also looking ahead to the next meeting of OPEC and its allies at the end of November, to see whether the bloc commits to proceeding with plans to add more supply from January in the face of fresh price weakness.

First Published Date: 02 Nov 2020, 15:35 PM IST
Shopping Bag Shop Now
74% OFF
Microfiber Car Cleaning Soft Brush Ideal as Mop Duster, Washing Brush with Long Handle, Dust Cleaner Car Wash Brush with Handle, Soft Brush Scratch Free, Cleaning Dashboard (Car Duster)
Rs. 389 Rs. 1,499
SHAYONAM Dent Removal Kit - Powerful Car Dent Repair Kit - Suction Cup Dent Puller Handle Lifter and Dent Repair Puller for Car Body Dent, Glass, Tiles and Mirror (Plastic)
Rs. 399
40% OFF
MelodySusie Portable Electric Nail Drill Professional Cleaner Dust Collection/Lighting 2 in 1 Car Vacuum Cleaner 120W High-Power Handheld Wireless Vacuum Cleaner Home Car Dual-use USB Rechargeable (Black)
Rs. 599 Rs. 999
42% OFF
Boldfit Cycle Pump for Bicycle Portable Air Pump for Cycle and Bike Foot Balloon Pump Machine for Balloon High Pressure Cycle Air Pump for Bicycle, Car, Football Pump, Pump for Cycle Tyre Black
Rs. 349 Rs. 599

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
Powered by: Acko Logo
Please be noted that any information provided herein above will be received by Acko General Insurance Limited (“Acko”). By mentioning the above information, you agree to provide these details and information to Acko.
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.