WTI Crude oil futures recovered in a steady manner in last session as rising equities supported the sentiments. Weak US dollar also ensured that the commodity extends rally above $40 per barrel. DOW surged around 2% as Democrats are likely to would move ahead with $2.4 trillion aid package that could come to a vote soon. European stocks also soared sharply. Oil eased a little in Asia though. WTI Crude is currently quoting at $40.41 per barrel, down 0.47% on the day.
The Norwegian Oil and Gas Association said oil firms in Norway plan to close down 22% of the country’s oil-and-gas output equivalent per day, if oil workers go on strike, Norwegian Union of Industry and Energy Workers (Industry Energy), the Norwegian Union of Energy Workers (Safe) and the Norwegian Organisation of Managers and Executives (Lederne) are negotiating on behalf of the employees, while Norwegian Oil and Gas represents the employers.
Oil prices fell on Tuesday as demand concerns
Oil prices fell on Tuesday as demand concerns driven by COVID-19 outweighed hopes that U.S. lawmakers and the White House were nearing an agreement on a new stimulus package to revive the world’s biggest economy. Brent and WTI in August hit their highest levels since early March on optimism over rising fuel demand and major oil producers’ strong compliance with promised supply cuts, but have since dropped by about $3 on demand worries. In another negative demand sign, crude imports in August to Japan, the world’s fourth biggest consumer, slumped nearly 26%, government data showed on Tuesday. In Norway, one of the largest oil producers outside OPEC, a workers’ strike which may take place on Sept. 30 is threatening to cut Norway’s production by 900,000 barrels per day, the Norwegian Oil and Gas Association (NOG) said on Friday.
TREND : SIDEWAYS