Azeri Light crude sinks to $40

Azeri LT CIF crude oil, exported from Azerbaijan to the world markets, decreased by $ 2.00 (-4.71%), settling at $ 40.47 per barrel, Report says.

The lowest price for Azerbaijani oil was recorded on April 21, 2020 ($ 15.81), and in July 2008, the maximum amount was $ 149.66.

Oil prices eked out small gains on Tuesday after sharp losses, but sentiment remained subdued as a surge in global coronavirus cases hit prospects for crude demand while supply is rising.

Brent crude was up 19 cents, or 0.5%, at $40.65 a barrel by 0324 GMT. U.S. oil gained 15 cents, or 0.4%, at $38.71 a barrel. Both contracts fell more than 3% on Monday.

A lack of progress on agreeing on a U.S. coronavirus relief package added to market gloom, although U.S. House of Representatives Speaker Nancy Pelosi said Monday she hoped a deal could be reached before the November 3 elections.

A wave of coronavirus infections sweeping across the United States, Russia, France, and many other countries has undermined the global economic outlook, with record numbers of new cases forcing some countries to impose new restrictions as winter looms.

“We think demand from this point onwards is going to struggle to grow. COVID-19 restrictions are all part of that,” said Commonwealth Bank of Australia (CBA) commodities analyst Vivek Dhar.

CBA expects U.S. oil to average $38 and Brent to average $41 in the fourth quarter this year.