Oil prices increases with huge demand destruction
On Thursday, oil prices increased on higher note, although gains were restricted by a surprise rise in the United States crude oil inventories as the COVID-19 pandemic hit fuel consumption. The US crude oil inventories as well as other distillate inventories increased unexpectedly and meanwhile, the fuel demand dropped in the most recent week because the sharp increment in the new coronavirus cases has began to hit American consumption, said by the Energy Information Administration
The oil prices have been marking period since hitting a 4-month high rate initially in the week on hopeful records about a coronavirus vaccination. According to the news, the fuel inventories would be largely drawn upon, but the rise in the coronavirus cases has hampered the recovery, referring to normal demand during the peak American summer driving season.
The crude oil inventories are increased by almost 4.9 million barrels in the week to the July 17th to nearly 536.6 million barrels as compared with the desirable expectations in a report for a 2.1 million barrel decline. The production increased to 11.1 million barrels per day, increased by 100,000 barrels per day. The president of the United States of America Donald Trump stated that the coronavirus outbreak would mostly worsen before it became better, a move from his lastly powerful emphasis on restarting the US economy.