September 22. UK signaled new quarantine
On Tuesday, the UK said it intends to abandon the return of people to their usual jobs in an attempt to contain the rapidly growing second wave of Covid-19 in the country.
In addition to imposing curfews for pubs and restaurants, Prime Minister Boris Johnson called on the population to switch to remote work. Such statements may indicate that the country is moving towards expanding the tough social distancing measures introduced in the spring.
On the news, stocks in UK travel and leisure companies began to decline before they bounced back from the crisis (Ryanair, International Airlines Group and Air France). KLM shares plunged 4-5%, while shares in aerospace suppliers Meggitt, Senior and Rolls-Royce tumbled for the last to hit another new low for the year.
The British company Whitbread, which operates a chain of hotels and restaurants, announced today plans to cut 18% of its staff, or about 6 thousand jobs. The company's shares fell 3.5%, having lost more than half of their value this year.September 23. US Department of Energy Oil Inventory Report
According to the Energy Information Administration (EIA) of the US Department of Energy, the volume of commercial crude oil in storage in the United States (excluding strategic reserves) for the week ended September 18, decreased by 1.6 million barrels to 494.4 million barrels. Analysts predicted a decline in oil reserves by 4.0 million barrels.
US gasoline stocks decreased by 4.0 million barrels. and amounted to 227.5 million barrels. Experts expected a 1.9 million barrels of gasoline reserves to be cut. Distillate stocks (including diesel fuel and heating oil) decreased by 3.4 mln barrels. and amounted to 175.9 million barrels. Analysts had expected an increase in distillate stocks by 1.2 million barrels.
Oil reserves in the US Strategic Reserve (SPR) decreased by 0.8 million barrels. and amounted to 645.0 million barrels.
Cushing's commercial crude oil reserves remained unchanged at 54.3 mmbbl.
Earlier, the API Institute reported that commercial oil reserves in the United States increased by 0.7 million barrels last week, gasoline inventories decreased by 7.7 million barrels, distillate reserves decreased by 2.1 million barrels, and oil reserves in the Cushing storage facility increased by 0.3 million barrels.September 24. Oil prices drop due to economic uncertainty and coronavirus
Oil prices fell on Thursday amid uncertainty about the outlook for the global economy and the situation with the coronavirus. The current quotation of Brent is $41.50 per barrel, WTI is $39.75.
Market participants are awaiting further action by the authorities of some countries amid an increase in new cases of coronavirus infection. Investors are concerned about the outlook for the global economy and oil demand amid the likelihood of re-imposing restrictions by some countries.
Additional pressure on oil prices was exerted by statements by the Iraqi oil minister that the country was counting on an agreement with OPEC + to increase oil exports. A week earlier, the minister said that Iraq had developed a plan to compensate for its overproduction of oil by the end of 2020 as part of the OPEC + deal.
Regards, ForexMart PR Manager