Second Wave Concern and Increase in Oil Stocks Affected Prices!

Second Wave Concern and Increase in Oil Stocks Affected Prices! With these developments, oil prices fell again. As a result of the re-increase of coronavirus cases, which were under control in China a while ago, the second wave concern started all over the world. Both the second wave concern and the rising oil stocks in the US affected prices. The second wave concern has further worsened market confidence, which has deteriorated since the beginning of this year. Futures contracts fell to $ 37 per barrel after falling 1.1 percent on Wednesday. According to official data released by the Energy Information Administration (EIA), crude oil inventories in the US rose more than 1.2 million barrels last week, indicating that demand did not recover faster than expected. However, gasoline stocks have shrunk and this decline indicates that there has been an increase in consumption due to the increase in vehicle use in the summer period. Cases Increase Again in China China, where the coronavirus was first seen, managed to successfully control the outbreak some time ago. However, in the past few days, the number of cases in the capital, Beijing, exceeded 150. Accordingly, schools were closed in the city, restrictions were introduced in residential areas, and train flights and flights were restricted. The closure of the economy due to the epidemic in this country, which is the world's largest oil exporter, will constitute a major problem in terms of global energy prices. In its last monthly report, OPEC noted that in the second half of fuel demand, the gradual recovery in the global economy will remain under pressure as it will not compensate for the decline in the first half of the year. On the other hand, Commodity brokerage firm Trafigura Group took a more optimistic angle, stating that global oil demand has already returned up to 90 percent of its pre-epidemic levels. "We have not yet achieved control over the coronavirus" "We have seen enough steps from the supply side to raise oil prices, but this has been the issue that OPEC will follow during its meeting," said Fat Prophets resource analyst David Lennox in Sydney. We will see that the pressure will increase ". West Texas oil (WTI) in July futures fell 2.1 percent in the Nymex market to $ 37.18 a barrel at 10:02 am Singapore time. The contract closed 1.1 percent at $ 37.96 on Wednesday. Brent oil in August fell 1.4 percent to $ 40.13 a barrel in the ICE Futures Europe market after a 0.6 percent loss in the previous session. This contract is 41 cents cheaper than the November contract. This difference was at 82 cents on Monday. The narrowing of this difference, which is called Contango, shows that the supply is tightening.