Market Close: July 09 Down

NYMEX ULSD     $1.2239 DN $0.0105

NYMEX Gas       $1.2505 DN $0.0404

NEWS

Concerns about renewed coronavirus lockdowns in the United States outweighed signs of a recovery in U.S. gasoline demand on Thursday to keep a lid on oil prices. The market is also in a holding pattern ahead of a meeting on July 15 of the market monitoring panel of the Organization of the Petroleum Exporting Countries (OPEC) and its allies. Brent Crude were down 90 cents, or 2%, at $42.39 per barrel, after gaining 0.5% on Wednesday. WTI Crude slipped $1.28, or 3.13%, to settle at $39.62 per barrel, after rising 0.7% the previous day. “Support will disappear after this week as coronavirus cases are surging in several U.S. states,” Tamas Varga at PVM Oil Associates said, adding that a fall in prices was likely.

Data from the U.S. Energy Information Administration showed U.S. gasoline stockpiles fell by 4.8 million barrels last week, much more than analysts expected, as demand hit its highest level since March 20. But a spike in coronavirus cases across several U.S. states raised the prospect of renewed lockdowns that would likely dent any sustained recovery in fuel demand. That kept the benchmark crude contracts in tight ranges this week, although holding above $40 a barrel.

Libya, whose ports have been blockaded since January, is trying to resume exports after the state oil firm lifted force majeure at its Es Sider oil terminal on Wednesday. However, a tanker was prevented from entering the port.