Oil prices slip despite fall in US crude inventories

26 November 2020 (Last Updated November 26th, 2020 11:10)

Oil prices have dropped as Covid-19-induced lockdown concerns still persist, which stalled the price rise following a decrease in the US crude stocks.

Oil prices slip despite fall in US crude inventories
The two benchmarks had risen about 8% this week after AstraZeneca announced that its Covid-19 vaccine could be effective by up to 90%. Credit: Mohamed Aly from Pixabay.

Oil prices have dropped as Covid-19-induced lockdown concerns still persist, which stalled the price rise following a decrease in the US crude stocks.

Brent crude futures decreased by $0.01 to reach $48.60 a barrel by 7:46am GMT while US West Texas Intermediate (WTI) futures were down by $0.04 to reach $45.67, Reuters reported.

With the pandemic worsening, there are concerns of further lockdowns, and the rising number of rigs in the US and the production increase from Libya served as risk factors.

According to data released by industry group the Energy Information Administration (EIA), US crude stocks fell 754,000 barrels for the week ended 20 November, while stocks at WTI delivery point in Cushing, Oklahoma, were down by 1.7 million barrels.

Demand for gasoline for the week fell by 128,000bpd to touch 8.13Mbpd, which is the lowest since June.

With the US recording 2.3 million new Covid-19 infections in the last two weeks, US President-elect Joe Biden has urged people to avoid family gatherings and maintain social distancing during the Thanksgiving holiday.

The two benchmarks had risen by 8% this week after AstraZeneca announced that its Covid-19 vaccine could be effective by up to 90%.