TOKYO, Sept 30 (Reuters)Oil prices fell for a second day on Wednesday, extending big losses from the previous session amid rising concerns about fuel demand as the coronavirus pandemic worsens.

Brent crude LCOc1 dropped 23 cents, or 0.6%, to $41.03 per barrel by 0048 GMT. West Texas Intermediate CLc1 fell 26 cents, or 0.7%, to $39.29.

The benchmarks fell more than 3% on Tuesday as global COVID-19 cases passed 1 million, having doubled in three months.

“It is important to keep in mind that moves to the downside have the potential to be supersized,” given rising coronavirus cases and increasing oil supplies around the world, said Bob Yawger, director of energy futures at Mizuho in New York.

CEOs of the world’s biggest trading companies are forecasting a weak recovery for oil demand and little movement in prices in the coming months and potentially years.

Weighing heavily on markets is the continued depressed demand for jet fuel, with air travel in the doldrums due to coronavirus restrictions and a general disinclination to travel.

Refineries have been trying to find ways to blend their product but an oversupply remains and some plants will be forced to shut down.

Marathon Petroleum Corp MPC.N, the largest oil refiner in the United States, started imposing job cuts on Tuesday, according to people familiar with the matter.

To counter the fall in demand the Organization of the Petroleum Exporting Countries is unlikely to increase oil production as planned from January next year, traders said on Tuesday.

The market looked past data from the American Petroleum Institute on Tuesday showing U.S. crude oil stocks fell against expectations, focussing instead on the rise in gasoline inventories. API/S

Also keeping traders and investors on tenterhooks is the November presidential election, which may remain undetermined on election

While most stocks underwent a correction in September, beaten-down coal companies were among the few that actually saw strong performance. The coal ETF (KOL) rose about 5% with names such as Arch Resources (ARCH) rising a staggering 33%.

Most of the gains have been in metallurgical coal producers that supply coal to steelmakers. There has been an uptick in demand for met coal from China which has caused prices and sales volumes to rise. Thermal coal (used for power) has been a bit weaker but has also seen an uptick in prices and sales volumes.

Interestingly, Alliance Resource Partners (ARLP) has been left out of the rally. The company produces both thermal and metallurgical coal. The stock is trading at nearly its lowest price ever despite recently seeing an uptick in sales and prices. The company is no doubt in a difficult position after seeing sales decline over 50% Y/Y last quarter.

That said, the company had a positive demand outlook for Q3, and recent events in the coal market indicate that demand is indeed rising. Natural gas prices are higher which should boost competitive demand. China recently looked to increase coal imports due to a shortage, which was made worse by a mine collapse and corruption probe. If this continues to cause coal prices to rise internationally, ARLP’s export business should see greater profitability and demand.

A Closer Look at ARLP’s Valuation

ARLP has declined about 15% on generally positive news this month. Of course, with the equity market as a whole seeing higher volatility this month many investors may be selling ARLP in order to shore up liquidity. Though the company historically pays an extremely strong dividend that would equate to a yield of 50%, it is currently suspended as the company uses cash flow to reduce debt

The MarketWatch News Department was not involved in the creation of this content.

Sep 28, 2020 (CDN Newswire via Comtex) —
The report titled Global Agricultural Insurance Market 2020 by Company, Regions, Type and Application, Forecast to 2025 introduced by offers a whole study of the parent market, synopsis, new industry data, and innovative future tendencies, ruling vendors, and predictions, analysis. The report highlights various market dynamics like trends, drivers, challenges, and opportunities. The report discusses the market dimensions, analysis of market share, and outline of the competitive scene and top merchants in the industry. The report is segregated by company, by country, and by application/types for the competitive landscape analysis. The research further includes the introduction of firms in the global Agricultural Insurance market along with their summary, earnings division, study findings, and completion.

Key players covered in the report: PICC, XL Catlin, QBE, Zurich (RCIS), Prudential, Chubb, Sompo International (Endurance Specialty), American Financial Group, China United Property Insurance, Everest Re Group, Farmers Mutual Hail, ICICI Lombard, CUNA Mutual, Archer Daniels Midland, CGB Diversified Services, Agriculture Insurance Company of India, New India Assurance, Tokio Marine

NOTE: Our analysts monitoring the situation across the globe explains that the market will generate remunerative prospects for producers post COVID-19 crisis. The report aims to provide an additional illustration of the latest scenario, economic slowdown, and COVID-19 impact on the overall industry.


Market Overview:

The report delivers a market analysis, framework, old and future trends in the global Agricultural Insurance market as well as demand, size, trading, supply, competitors, and prices as well as provides global predominant vendor’s information both on the global and regional markets. The report analyzes the current landscape of the ever-evolving business sector and the present and future status of the market. Further,