LONDON—Oil prices fell on Oct. 16, dragged down by concerns that a spike in COVID-19 cases in Europe and the United States is curtailing demand in two of the world’s biggest fuel consuming regions, while a stronger U.S. dollar also pressured prices.
Brent crude futures for December were down 73 cents, or 1.7%, at $42.43 a barrel by 7:26 CDT and U.S. West Texas Intermediate (WTI) crude futures for November delivery slid 66 cents, or 1.7%, to $40.30.
“The reality is that we’re now seeing a pretty active spread of the pandemic across Europe and it’s spreading again in North America, and that potentially will weigh on oil demand recovery,” said Lachlan Shaw, head of commodity research at the National Bank of Australia.
Some European countries were reviving curfews and lockdowns to fight a surge in new coronavirus cases, with Britain imposing tougher COVID-19 restrictions in London on Oct. 16.
“Although we will are unlikely to enter such deep lockdowns as in the pandemic’s first wave, we still see restrictions, and they do have an effect in every aspect of our lives, including fuel consumption,” said Rystad Energy analyst Paola Rodriguez-Masiu.
Crude also fell as the dollar headed towards its best week in a month.
A technical committee of OPEC and allied oil producers, a group known as OPEC+, ended its meeting on Oct. 15 expressing concerns about a weak demand outlook.
OPEC+ is set to ease its current supply cuts of 7.7 million barrels per day (bbl/d) by 2 million bbl/d in January.
The well, which is nearing completion, produced from all zones tested at a maximum combined flow rate of more than 3,900 barrels of oil per day (bbl/d) with 28/64-in. choke, Genel said in a news release.
The well is being completed as a producer in the Vivian Formation in the north part of the field, the company said.
Exxon Mobil Corp. and offshore Guyana partners continue their success with their 13th discovery on the Stabroek Block and fifth discovery in the Turbot area.