LONDON (Reuters) – Oil costs fell additional on Friday and have been on observe for a second weekly drop after U.S. stock markets tumbled and U.S. stockpiles rose unexpectedly.FILE PHOTO: Mud blows round a crude oil pump jack and flare burning extra gasoline at a drill pad within the Permian Basin in Loving County, Texas, U.S. November 25, 2019.REUTERS/Angus Mordant/File PhotoBrent LCOc1 fell 17 cents, or 0.4%, at $39.89 a barrel by 1348 GMT, and U.S. crude CLc1 was down 1 cent, or lower than 0.1%, to $37.29 a barrel.Each benchmarks have been 6% down for the week.“Financial markets are continuing to set the tone, including on the oil market. The renewed slide on U.S. stock markets dragged oil prices down with it,” Commerzbank analyst Eugen Weinberg mentioned.The three most important U.S. stock indexes have been headed for a second straight weekly decline as latest financial indicators counsel an extended and troublesome restoration from the pandemic.“Stock markets dived, oil followed, and Brent lost 15% of its value in five trading sessions as money managers liquidated,” oil dealer PVM’s Tamas Varga mentioned.Additionally dampening the market temper, the U.S. Senate killed a Republican invoice that will have offered round $300 billion in new coronavirus assist.Fears about an oversupply additionally added to the final feeling of uncertainty, Weinberg mentioned.In the US, stockpiles rose final week, in opposition to expectations, as refineries slowly returned to operations after manufacturing websites have been shut down on account of storms within the Gulf of Mexico and the broader area.U.S. crude inventories rose 2 million barrels, in contrast with forecasts for a 1.three million-barrel lower in a Reuters ballot. [EIA/S] [ENERGYUSA]In an extra bearish signal, merchants have been beginning to ebook tankers once more to retailer crude oil and diesel, amid a stalled financial restoration because the COVID-19 pandemic continues.Graphic: Oil Product Floating Storage in Europe -Growing stockpiles are prone to be a topic at a gathering on Sept. 17 of the market monitoring panel of the Group of the Petroleum Exporting International locations (OPEC) and allies together with Russia.The group referred to as OPEC+ has been withholding provide to scale back stockpiles, however analysts say the assembly is prone to deal with compliance amongst members, somewhat than search deeper cuts.Following Saudi Arabia, Kuwait additionally lowered its official promoting price to Asia for October, to counter slower demand.Reporting by Bozorgmehr Sharafedin in London and Aaron Sheldrick in Tokyo; Modifying by David Evans and Louise Heavens
