Today oil continues to fall in price slightly after a slight decline in prices following the results of the previous session.
The outlook for global oil demand remains gloomy, which puts pressure on prices, but stock markets are rising, and investors see this as a signal of increased business activity, which, in their opinion, should support demand, writes Bloomberg.
Another suspension of operations by a number of oil companies in the Gulf of Mexico due to the approaching storm is also holding back the decline in oil prices.
The cost of November futures for Brent oil on the London stock exchange ICE Futures by 8:46 Moscow time was $ 39.49 per barrel, which is $ 0.12 (0.3%) below the price at the close of the previous session. As a result of trading on Monday, these contracts fell by $ 0.22 (0.6%).
The price of WTI crude oil futures for October in electronic trading on the New York Mercantile Exchange (NYMEX) is $ 37.16 per barrel, which is $ 0.1 (0.27%) below the level of the previous session. On Monday, these contracts fell $ 0.09 (0.02%).
British oil company BP Plc (LON: BP) believes that the peak in global oil demand may be passed in the next few years. BP's global energy forecast to 2050, released Monday, explores three possible scenarios for a global shift to cleaner fuels, all of which involve declining oil demand over the next 30 years.
Meanwhile, OPEC on Monday lowered its forecast for global oil demand in 2020. According to new estimates, global oil consumption this year will be reduced by 9.5 million barrels per day (bpd) to 90.2 million bpd. OPEC had previously forecast a decline in demand by 9.1 million bpd this year.
The organization also downgraded its forecast for 2021.
“Oil is trading below the psychologically important $ 40 a barrel, which shows that traders are probably wondering how deep the market could fall in the event of a second wave of the coronavirus pandemic,” said Rystad Energy analyst Bjornar Tonhaugen.
Oil demand, he said, has increased since the first wave of the pandemic, but “has not recovered as much as the market hoped and forecasts for the coming months are fairly flat.”
“The COVID-19 pandemic is not over yet, and new cases of infection are recorded around the world, which ultimately affects the oil market, dependent on consumers,” MarketWatch quotes Tonhaugen.