Oil drops more than 7% in worst day since September
(PUBLISHED THU, MAR 18 20211:37 AM EDTUPDATED THU, MAR 18 20212:40 PM EDT)
Oil prices sunk for a fifth day running on Thursday on a stronger dollar, a further increase in U.S. crude and fuel inventories and the weight of the ever-present COVID-19 pandemic.
Brent crude slid 6.94% to settle at $63.28 per barrel. U.S. oil settled 7.12%, or $4.60, lower at $60 per barrel, after shedding 0.3% in the previous session. Both contracts are down 6% over the past five days.
“Short-term developments - stuttering vaccine rollouts and the build in U.S. oil inventories - are driving sentiment, but the longer-term oil outlook is still encouraging,” said PVM Oil Associates analyst Tamas Varga.
“Yesterday’s U.S. Federal Reserve meeting provided a boost to equities ... U.S. economic growth has been revised upwards while unemployment is expected to decline.”
A sharp rise in the value of the dollar after the Fed meeting has also driven the oil sell-off.
Government data on Wednesday showed U.S. crude inventories have risen for four straight weeks after severe cold weather forced shutdowns at refineries in the south. An industry report estimating a decline had raised hopes of a halt to the gains.
U.S. crude inventories rose by 2.4 million barrels last week, the U.S. Energy Information Administration (EIA) said on Wednesday, a day after the American Petroleum Institute (API) estimated there had been a 1 million barrel decline.
Varga added the market would be waiting for U.S. manufacturing data next week for further indications on the health of the world’s largest economy.
“Lower crude demand from Asian buyers as a result of upcoming refinery maintenance and probably higher prices is also something not helping crude at the moment,” said UBS commodity analyst Giovanni Staunovo.
A slowdown in some vaccination programmes and the prospect of more restrictions to control the coronavirus have tempered expectations for a recovery in fuel use.
Britain said on Thursday that global supply bumps meant its vaccine rollout would be slower than hoped in the coming weeks but it expects deliveries to increase from May.
A number of European countries have halted use of the AstraZeneca shot because of concerns about possible side effects, though the World Health Organization said Europe should continue to use the vaccine.
“Deleum Primera will appeal against the suspension as the alleged practice was carried out by the individuals concerned and is not practised by Deleum Primera, its board of directors, nor its shareholders, excepting the said individuals who are two of the directors and shareholders,” said Deleum.
Deleum added that the suspension is not expected to have any material financial impact on the group for the year ending Dec 31, 2021.
PETRONAS has decided to suspend Deleum Primera’s license for all Standardised Work and Equipment Categories (SWEC) for future tender and/or any new award with effect from the date of the letter until further notice (“Suspension Period”).
Throughout the Suspension Period, Deleum Primera will not be invited nor be allowed to participate in any future tender issued by PETRONAS including its subsidiaries and any Petroleum Arrangement Contractors (PACs”).
Deleum Primera also will not be awarded with any new contract by PETRONAS including its subsidiaries and any PACs.
Deleum Primera is 60% subsidiries of Deleum and primary involve in ICS department, so it wont affect power&machinery and oilfield services department. However in long term, still depend on whether company can success to appeal or not~
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Posted by AllanTingAS > 2020-08-22 11:14 | Report Abuse
Worry that the next week QR announcement will be no good. Since the commodity is weak and couple with MCO. Hopefully the result still in positive zone.