Oil prices accelerated their decline during trading on concerns about demand.
The cost of November futures for Brent oil on the London stock exchange ICE Futures by 18:36 Moscow time was $ 39.61 per barrel, which is $ 0.22 (0.55%) below the price at the close of the previous session.
The price of futures for WTI crude oil for October in electronic trading on the New York Mercantile Exchange (NYMEX) by this time decreased by $ 0.15 (0.40%) – to $ 37.18 per barrel.
Last week, Brent fell 6.6%, WTI – 6.1%. Prices for both grades of oil fell for the second week in a row amid concerns about continued weak demand, as well as rising US inventories.
Libya plans to restore oil production, which will ensure the flow of raw materials to the market while maintaining low demand. Earlier it was reported that the commander-in-chief of the Libyan National Army (LNA), Khalifa Haftar, personally promised to “reopen” the energy sector of Libya, writes Dow Jones.
“If production in Libya resumes, we will talk about 1 million barrels per day or more,” says Rystad Energy expert Bjornar Tonhaugen, quoted by Dow Jones.
“In terms of demand … the coronavirus pandemic is not over yet, new infections continue to emerge around the world, which in turn is affecting key oil markets,” he said.
Meanwhile, over the weekend, some of the oil producers working in the Gulf of Mexico suspended operations again due to the approach of another hurricane, which could lead to a temporary decrease in supplies from the region, experts say AxiCorp.
British oil company BP (LON: BP) believes that oil demand may never return to levels that were before the coronavirus pandemic. The most optimistic scenario outlined in the BP report assumes that global oil demand will be little more than flat over the next two decades as the global energy sector moves away from fossil fuels.
The Organization of the Petroleum Exporting Countries (OPEC) has raised its forecast for a fall in oil demand in 2020 by 400,000 barrels per day compared to an estimate made a month earlier, to 90.2 million bpd, according to the cartel's monthly report.
At the same time, OPEC has sharply raised its estimate of oil supply from non-cartel countries for 2020 – by 360 thousand barrels per day compared to the forecast made a month ago, mainly at the expense of the United States.
The focus of the oil market is still the OPEC + negotiations. A meeting of the OPEC + Technical Monitoring Committee (JTC) is scheduled for Wednesday, and a meeting of the OPEC + Ministerial Monitoring Committee (JMMC) is scheduled for Thursday.
Individual OPEC + countries still do not fully fulfill their promise to cut production, and this issue is likely to be discussed by the monitoring committee this week, Bloomberg writes.