U.S. markets closed
  • S&P 500

    4,232.60
    +30.98 (+0.74%)
     
  • Dow 30

    34,777.76
    +229.23 (+0.66%)
     
  • Nasdaq

    13,752.24
    +119.39 (+0.88%)
     
  • Russell 2000

    2,271.63
    +30.21 (+1.35%)
     
  • Crude Oil

    64.82
    +0.11 (+0.17%)
     
  • Gold

    1,832.00
    +16.30 (+0.90%)
     
  • Silver

    27.57
    +0.09 (+0.32%)
     
  • EUR/USD

    1.2168
    +0.0100 (+0.83%)
     
  • 10-Yr Bond

    1.5770
    +0.0160 (+1.02%)
     
  • GBP/USD

    1.3990
    +0.0097 (+0.70%)
     
  • USD/JPY

    108.5820
    -0.5030 (-0.46%)
     
  • BTC-USD

    57,422.72
    +695.93 (+1.23%)
     
  • CMC Crypto 200

    1,480.07
    +44.28 (+3.08%)
     
  • FTSE 100

    7,129.71
    +53.54 (+0.76%)
     
  • Nikkei 225

    29,357.82
    +26.45 (+0.09%)
     

Oil Up, Finishes August Strong Despite Oversupply Fears

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

By Gina Lee

Investing.com – Oil was up on Monday morning in Asia, with global stimulus measures continuing to support prices but with gains capped over creeping fears of an oversupply.

Brent oil futures rose 0.61% to $46.09 by 12:17 AM ET (5:17 AM GMT) and WTI futures were up 0.40% to $43.14.

Hurricane Laura, which struck the Gulf of Mexico region during the previous week, had a weaker impact on oil markets than feared, with the region’s offshore platforms and refineries that were shut down during the storm continuing to restore operations.

A weak dollar was also supporting oil, but sluggish fuel demand recovery as the number of COVID-19 cases continues to rise and fears of an oversupply dampened investor sentiment.

Some investors warned of hurdles ahead for the black liquid.

“We believe that the impact of a cheaper dollar from current levels will see a minimal impact on crude purchases, irrespective of slightly more favorable crude pricing... the relationship between demand and price elasticity is blunted in the current environment, because oil is already cheap and readily available and there currently exist a dearth of buyers,” RBC Capital’s Mike Tran said in a note.

Tran's warning was supported by data from Refinitiv and Vortexa forecasting that Chinese crude oil imports in September will fall for the first time in five months.

Meanwhile, Saudi Arabia’s energy minister Prince Abdulaziz bin Salman Al-Saud reportedly said on Sunday that Saudi Aramco (SE:2222) discovered two new oil and gas fields, Abraq al-Toloul oil field and Hadabat al Hajara gas field, in the country’s northern regions.

Related Articles

Oil rises on stimulus support and China data, set for monthly gains

Chinese Factory Data Slips, But Services Sector Sees Rebound, in August

Oil Holds Near $43 as Laura’s Passing Brings Virus Back in Focus