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Oil prices drop as COVID-19 cases surge globally

Category: Economy

Date: 2020-07-10T12:27:02+0000
Oil prices drop as COVID-19 cases surge globally

Shafaq news/ The International Energy Agency (IEA) raised its forecast for oil demand, on Friday, warning that COVID-19 outbreak represents a real threat.
IEA raised its forecast to 92.1 million barrels/day, up 400,000 million/bay from its outlook last month, citing a smaller-than-expected second-quarter decline.
In its monthly report, IEA said, "While the oil market has undoubtedly made progress […] the large, and in some countries, accelerating number of COVID-19 cases is a disturbing reminder that the pandemic is not under control and the risk to our market outlook is almost certainly to the downside", adding that the easing of lockdown measures in many countries caused a strong rebound to fuel deliveries in May, June and likely also July.
"For refiners, any benefit from improving demand is likely to be offset by expectations of much tighter feedstock markets ahead. Refining margins will also be challenged by a major product stocks overhang from the very weak second quarter of 2020", IEA reported.

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