Oil depreciates by more than 2%, may end in the red for the second week in a row

Oil depreciates by more than 2%, may end in the red for the second week in a row

Oil depreciates by more than 2%, may end in the red for the second week in a row

Oil prices continue to decline after falling the day before.

At the same time, oil may show the second consecutive week of decline, Trading Economics notes. Oil prices fell to their lowest since September 15 on Thursday, according to MarketWatch.

The cost of December futures for Brent oil on the London stock exchange ICE Futures by 8:48 Moscow time was $ 39.85 per barrel, which is $ 1.08 (2.64%) below the price at the close of the previous session. As a result of trading on Thursday, these contracts fell by $ 1.37 (3.2%).

The price of futures for WTI for November in electronic trading on the New York Mercantile Exchange (NYMEX) by this time is $ 37.60 per barrel, which is $ 1.12 (2.89%) below the level of the previous session. On Thursday, futures lost $ 1.5 (3.7%).

Investor sentiment continues to be affected by concerns about demand, despite the fact that data from the US Department of Energy on Wednesday showed a reduction in oil reserves in the country for the third week in a row, writes MarketWatch.

“The oil market cannot shake off concerns about demand, as the supply of oil in the US continues to decline,” said Phil Flynn, senior market analyst at The Price Futures Group.

“Due to lingering concerns about consumption, the market is less concerned about the downward trend in supply,” he said.

The Spanish government and the Madrid authorities have reached an agreement on the partial isolation of the entire city and its suburbs due to the complication of the situation with the spread of the coronavirus COVID-19, Western media reported earlier, citing the country's Ministry of Health.

Meanwhile, Paris and its suburbs from Monday may go on a “high alert”, which implies a ban on family events and the complete closure of bars, newspaper Le Figaro writes, citing French Health Minister Olivier Veran.

“Expectations that in Europe in many countries will again restrict movement, undermine hopes for a recovery in demand in the short term,” – said Oanda analyst Edward Moya, quoted by S&P Global Platts.

In the meantime, according to the document, which was reviewed by the agency, OPEC + needs to further cut production by 2.375 million b / d to compensate for the previously observed overproduction.

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