Oil prices fell in European trade on Thursday, heading for the second loss in 3 days, on growing US oversupply concerns, after a build in US crude inventories for the second straight week, in addition to rising oil production levels, which comes amid the rapid spread of the coronavirus, especially in Europe and North and South America.
US crude fell 1.1% to $41.11 a barrel, after opening at $41.55, and hit a high of $41.88, Brent fell 0.8% to $43.80 a barrel, after opening at $44.15, and hit a high of $44.56.
US crude closed higher by 0.6% yesterday, and Brent crude futures rose 0.8%, posting the second daily gain in 3 days, after successive positive news about Covid-19 vaccine candidates.
The US Energy Information Administration reported yesterday that crude inventories rose 800,000 barrels to 489.5 million barrels during the week ending November 13, missing forecasts of a rise by 1.7 million barrels.
While the US production rose about 400,000 barrels last week, to a total of 10.9 million barrels per day, after operations restarted at the Gulf of Mexico following the end of a wave of hurricanes.
The second wave of Covid-19 continues to spread broadly across Europe, the US, and South America, with infections rising to record levels, even higher than the first wave, which led governments to reimpose lockdowns, weighing down on fuel demand.
