Oil has been down on Tuesday morning that is early in Asia with fuel demand concerns persisting as the Labor Day vacation in the U.S. marks the end of the very best period that is driving.
“The combination of coming out of summer top season that is driving the U.S., which is really a seasonal element, has refocused the market’s attention on whether the need data recovery is strong enough – and clearly there are doubts, as Aramco’s cost move has demonstrated,” National Australia Bank (OTC:NABZY) head of commodity research Lachlan Shaw told Reuters.
The maintenance that is upcoming for U.S. refineries could additionally cut demand that is crude 1.5 million to 2 million barrels per time, he included.
Brent oil futures were down 0.21% to $41.92 by 12:24 AM ET (5:24 AM GMT), reversing earlier gains. WTI Futures slid 1.99percent to $38.98, falling underneath the $40-mark.
“This follows on from stressing indications of a resurgence in COVID-19 cases in other elements of the planet. This has raised concerns that the data recovery that is present demand may be halted as everyone remains cautious about extended travel,” ANZ Research stated in a note.
Asia, 22 U.S. states and also the U.K. recently reported an uptick in cases. The amount that is total of cases topped 27.2 million as of 8, based on Johns Hopkins University data september.
Meanwhile, Saudi Aramco (SE:2222) slashed the October selling that is formal for its Arab light crude on Monday, indicating the Saudi giant’s doubt over demand growth as COVID-19 continues its worldwide rampage.
Investors now await data on crude oil supply from the American Petroleum Institute (API), due later on in the afternoon. Oil has been down on Tuesday morning that is early in Asia and we may see a significant dowonturn this week, post holiday.