Oil prices lose more than 1% under pressure from global demand concerns

Last Updated on October 16, 2020

Oil prices continued to decline with the US market opening on Friday to lose more than 1% in the process of incurring the second consecutive daily loss, under the pressure of renewed concerns about global demand, due to the acceleration of the second wave spread of the Coronavirus in Europe and the United Kingdom, in addition to the dwindling of stimulus approving in the United States, overshadowed by the impact of government data that showed a decrease in exceeding expectations in US inventories, and a slowdown in US oil production due to Hurricane Delta that hit the Gulf of Mexico.

Oil prices fell by 1.2% to $ 40.31, from the price level at $ 40.80, and recorded the highest level at $ 41.02, and Brent crude fell by more than 1.4% to $ 42.42 a barrel, from the price level at $ 43.04, and recorded the highest level at 43.20 $.

oil prices

On yesterday’s settlement, US crude lost 0.7%, and Brent crude futures fell 1.0%, in the first loss in the last three days, due to concerns about the outlook for demand in the United States.

Oil prices fall amid fears of a second wave of Corona virus

The indicators of the second wave breakout of the Coronavirus continue to weigh on the energy markets, following the increase in infections in various parts of Europe and the United Kingdom, and the announcement by some governments to impose a partial lockdown to prevent the outbreak of the disease.

These developments renewed concerns about global fuel demand levels and threaten to destroy any signs of a recovery in demand that occurred after the end of the first wave.

US Treasury Secretary “Stephen Mnuchin,” said that reaching an agreement on the economic aid package in the country before the presidential election will be difficult because Democrats and Republicans are still far from agreeing on some core issues.

Yesterday, the United States agency announced a decrease in commercial stocks in the United States by about 3.8 million barrels during the week October 9, in the fourth weekly decline in the last five weeks.

 

Professional Trader and Analyst, economist in Financial and Forex marketsince 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
Mohammed Abdelkhalik

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