Oil prices may remain below $50 a barrel until 2023

  • Oil prices may remain below $50 a barrel until 2023

Oil prices may remain below $50 a barrel until 2023

Brent crude futures LCOc1 for December fell by 6 cents to $42.39 a barrel by 0953 GMT while U.S. West Texas Intermediate CLc1 futures were down 5 cents at $40.15.

"The reality is that we're seeing now a pretty active spread of the pandemic across Europe and it's spreading again in north America and that potentially will weigh on oil demand recovery", said Lachlan Shaw, head of commodity research at the National Bank of Australia.

Crude stockpiles fell by 5.4 million, while distillate stockpiles, which include diesel and, fell by 3.9 million barrels.

The American Petroleum Institute said US crude inventories fell more than expected in the latest week, according to a report released after market close on Wednesday. Those drawdowns were almost double analysts' expectations in a poll.

"Oil prices are steady in Asia as the dollar rally takes a break and as the Russian and Saudis show a united front in making OPEC+ oil producers live up to their pledged output cut promises", said Edward Moya, a senior market analyst at OANDA.

Oil pared losses as declining US crude and fuel inventories eased concerns following reports of a sluggish labor market.

The poll was conducted ahead of reports from the American Petroleum Institute and the Energy Information Administration.

The Organization of the Petroleum Exporting Countries (OPEC), has raised its global oil demand forecast for 2020 by 60,000 barrels per day (b/d) from last month to 90.29 million b/d in October, as it sees an improvement in China's demand for most oil products except for jet fuel."China so far appears to be the only country globally moving steadily on the path to recovery based on gradually improving economic indicators, particularly in industrial production, which are rising from month to month", OPEC said in its latest monthly oil market report released yesterday. New cases have hit around 100,000 daily, compared with more than 51,000 in the United States. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes.