Oil Falls After Two Days of Gains Due to Lack of Supplies

Oil prices rebounded on Wednesday, August 25, to catch a breath after a strong rally this week due to the loss of a quarter of Mexico’s production and evidence that China, the world’s largest importer of crude, has contained the latest outbreak of the Coronavirus.

Brent crude futures fell 25 cents, equivalent to 0.4%, to $ 70.80 a barrel, while US West Texas Intermediate crude futures fell 28 cents, equivalent to 0.4%, to $ 67.26.

The futures contracts for both crudes rose about 8% during the previous two days, erasing most of the losses that it had suffered over the course of seven sessions.

Prices rose after supplies from Mexico decreased by more than 400,000 barrels per day as a result of a fire in an oil pier, but the state oil company expects to resume production on the thirtieth of this month.