04.Sep .2020 10:43

Oil falls 1% on lacklustre demand, set for biggest weekly drop since June

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Oil futures slipped 1% on Friday, with prices on both sides of the Atlantic heading for their biggest weekly drops since June, as lacklustre demand and ample fuel supplies offset support from a weaker dollar, GBC reports with reference to Reuters.

Brent crude LCOc1 fell 44 cents to $43.63 a barrel by 0325 GMT, while U.S. West Texas Intermediate was at $40.94 a barrel, down 43 cents and set for its first weekly drop in five weeks.

The volume of crude arriving in China, the world’s largest crude importer, is set to slow in September after rising for five straight months as its refiners gradually digest bloated inventories, according to data on Refinitiv Eikon.

In the United States, refiners awash in diesel inventory are unlikely to boost output soon.

“Soft margins are likely to cap further crude rallies and we anticipate further run cuts this fall to expedite the rebalancing of product stocks,” RBC Capital analyst Mike Tran said in a note.