Oil increased losses on fears of weakening demand

Oil increased losses on fears of weakening demand

Oil increased losses on fears of weakening demand

The decline in oil prices intensified in trading on Tuesday amid fears that a renewed rise in the global incidence of COVID-19 will slow the global economic recovery and limit oil demand.

Oil reserves in the United States last week rose by 1 million barrels, predict experts interviewed by Bloomberg. Gasoline inventories in the United States are expected to decline for the eighth week in a row – by 1.2 million barrels. The US Department of Energy will release a weekly report on the country's energy reserves on Wednesday.

Meanwhile, investors are hoping a new economic stimulus package could revive the US economic recovery. “Incentive payments will go a long way in supporting demand in the US at this critical juncture,” said AxiCorp analyst Stephen Inns.

The cost of November futures for Brent oil on the London stock exchange ICE Futures by 18:01 Moscow time on Tuesday is $ 41.26 per barrel, which is $ 1.17 (2.76%) below the price at the close of the previous session.

November contracts for Brent expire with the close of trading on Wednesday.

The price of futures for WTI crude oil for November in electronic trading on the New York Mercantile Exchange (NYMEX) by this time fell by $ 1.34 (3.3%) – to $ 39.26 per barrel.

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