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by Stockwatch Business Reporter
West Texas Intermediate crude for September delivery lost 24 cents to $42.34 on the New York Merc, while Brent for October lost 55 cents to $44.35 (all figures in this para U.S.). Western Canadian Select traded at a discount of $11.35 to WTI, up from a discount of $11.75. Natural gas for September added 10 cents to $2.45. The TSX energy index lost 2.40 points to close at 79.89.
Oil prices had another down day as a slowing economic recovery in Europe, where countries are struggling to control a fresh spike in COVID-19 cases, sparked concerns over fuel consumption. One prominent oil bull did not let this cloud its sunny outlook. Swiss investment bank UBS, which in April became one of the first big market watchers to forecast a dramatic near-term reversal of the oil price crisis, said in a new report that the global oil market is currently undersupplied and looks positive over the next 12 months. The undersupply came earlier than UBS expected. Back in April, UBS predicted that the market would "become undersupplied in 4Q [the fourth quarter]," which would push Brent prices up to $43 (U.S.) a barrel (more than double the $20 (U.S.) Brent price at the time). Brent actually cracked $43 (U.S.) in July. As for the undersupply, it is apparently already here.
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