Sino-Singapore Jingwei client, June 12 (Xinhua) According to foreign media reports, international oil prices plummeted on Thursday, local time, and the market was worried that a second wave of new coronary pneumonia epidemics may endanger the economic restart, while US crude oil inventories reached record levels.

　　New York oil prices fell sharply on the 11th. US crude oil futures fell 8.23% to close at 36.34 US dollars per barrel. London Brent crude oil fell 7.7% to close at 38.51 US dollars per barrel. The two major indicators of crude oil recorded the largest single-day decline since April 21 and 27.

Source of WTI crude oil futures: Yingwei Finance

　　Other asset classes also fell. The stock market plummeted, the S&P 500 index fell 4% that day, while US debt rose.

　　According to Reuters statistics, the total number of coronavirus infections in the United States exceeded 2 million on Wednesday, and new infections rose slightly after a five-week decline. Although most states have relaxed restrictions on actions, fuel consumption is still 20% below normal levels because consumers are still cautious.

　　The report said that the Fed is worried that this situation will continue, thereby limiting demand. Fed Chairman Powell said on Wednesday: "The increase in new cases in some places may weaken people's confidence in tourism, catering and entertainment."

　　The Fed expects that the unemployment rate in the United States will reach 9.3% by the end of 2020, and it will take several years to fall back, and the interest rate is expected to remain near zero at least until next year.

　　According to reports, if demand does not recover, US refiners and shipping companies will find themselves facing further oversupply. Data released by the US government on Wednesday showed that US crude oil inventories unexpectedly increased by 5.7 million barrels last week to a record 538 million barrels.

　　The increase in US gasoline inventories was also higher than expected, to 258.7 million barrels. Distillate stocks, including diesel and heating oil, increased by 1.6 million barrels, but the increase was less than in previous weeks.

　　The Organization of Petroleum Exporting Countries (OPEC) and non-OPEC oil-producing countries reached an agreement on the 6th, agreeing to raise the July output reduction target to 9.6 million barrels per day, and emphasized that all members must strive to achieve their respective production reduction quotas by 100%. According to the agreement reached in April, the original production cut in July will be reduced from 9.7 million barrels/day in May and June to 7.7 million barrels/day.

Oil prices have been supported by rising demand and record supply cuts, but data released by the US Energy Information Administration (EIA) on Wednesday showed that oil inventories unexpectedly increased, suggesting that demand recovery may have stalled. As of the week of June 5, oil inventories increased by 5.7 million barrels to a record 538 billion barrels.

As oil prices have risen in recent weeks, some producers have begun to open the gate again, which may lead to lower oil prices. Paula Masu, senior oil market analyst at Rystad Energy, said: "The recent increase in oil prices has prompted producers to restart some of their suspended production, which actually slightly reversed the positive impact of the decline in production on prices." She also said, "How to further oil prices Development will depend to a great extent on how quickly and quickly production can be resumed after a shutdown."

　　According to statistics from Johns Hopkins University in the United States, as of 3:38 p.m. EDT on the 11th, the number of confirmed cases of new coronary pneumonia in the United States reached 2013,940 and 113,467 deaths. (Sino-Singapore Jingwei APP)