Oil prices dropped considerably on Thursday as investors grew concerned over a re-acceleration in virus infections, which would dampen the outlook for crude demand.
The West Texas Intermediate (WTI) for July delivery shed 3.26 U.S. dollars, or 8.23 percent, to settle at 36.34 dollars a barrel on the New York Mercantile Exchange. The decline marked the biggest one-day loss since April 27 and the settlement was the lowest since June 1, according to Dow Jones Market Data.
Brent crude for August delivery dipped 3.18 dollars, or 7.62 percent, to close at 38.55 dollars a barrel on the London ICE Futures Exchange.
The moves came after coronavirus cases increased in some U.S. states that are reopening up from lockdowns.
More than 2 million confirmed COVID-19 cases have been reported in the United States, with over 113,000 deaths as of Thursday afternoon, according to the Center for Systems Science and Engineering at Johns Hopkins University.
Oil prices were also dragged as data showed a surprise build in U.S. inventories.
U.S. crude oil inventories increased by 5.7 million barrels during the week ending June 5, the U.S. Energy Information Administration said Wednesday. (Reuters)
Oil companies are set to lower their oil prices to almost P2 beginning Tuesday (March 3) after crude prices drop in the global market due to the coronavirus threat.
Seaoil and Shell will implement their oil price rollbacks on Tuesday at 6:00 a.m. Their gasoline prices will drop by P1.40 per liter, diesel prices will drop by P1.60/liter while their kerosene prices will be reduced by P1.65/liter.
Petro Gazz will also lower their oil prices to P1.40/liter in gasoline and P1.60/liter in diesel.
Meanwhile, Cleanfuel and Phoenix Petroleum already implemented their reduced prices during the weekend. Diesel and gasoline prices in Phoenix Petroleum and Cleanfuel dropped by P1.60/liter and P1.40/liter, respectively.
Prices of Liquefied Petroleum Gas (LPG) in Petron also dropped on Monday (March 2) by P3.90/kilogram. Auto LPG, meanwhile, had its prices drop by P2.20/liter.—AAC (with reports from Grace Casin)
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