By Francis Ogwo
Prices of oil prices dropped on Friday as a result of a surprise rise in U.S. stockpiles.
This is with a progressive wave of global demand for fuel.
The price of Brent crude dropped by 18 cents, or 0.5 per cent at $39.88 a barrel after dropping by two per cent on Thursday.
Similarly, the price of U.S. crude dropped 14 cents, or 0.4 per cent to $37.16 a barrel, after a two per cent fall previously.
The benchmarks are down around 6.5 per cent for the week and headed for a second week of declines, with hopes getting dim for a steady recovery in fuel demand amid signs of second-wave coronavirus outbreaks.
Last week in the U.S., stockpiles rose against expectations, as refineries slowly returned to operations after production sites were shut down due to storms in the Gulf of Mexico and wider region.
U.S. crude inventories rose 2.0 million barrels, compared with forecasts for a 1.3 million-barrel decrease in a Reuters’ poll.
In a further bearish sign, traders were starting to book tankers again to store crude oil and diesel, amid a stalled economic recovery as the COVID-19 pandemic continues unabated.
