TOKYO (Reuters) – Oil prices continued to decline on Wednesday after falling sharply in the previous session, with Brent falling below $ 40 a barrel for the first time since June amid rising coronavirus cases in several countries.
Coronavirus cases are on the rise in India, the UK, Spain and parts of the United States, where the rate of spread of the disease has not been contained for months.
Futures for Brent crude oil fell 0.25% to $ 39.68 per barrel by 08:30 Moscow time, for WTI – dropped 0.33% to $ 36.64 per barrel.
“The stalled demand has been worrying most of the market participants for some time, (and) it is becoming more evident,” says ING Economics in a note.
A record OPEC + production cut has supported oil prices, but given poor economic performance, the outlook for oil demand remains bleak.
(Aaron Sheldrick; Translated by Caleb Davis. Editor Marina Bobrova)