The decline in benchmark oil prices intensified on Friday after US President Donald Trump announced that COVID-19 test results taken from him and his wife had tested positive.
Investor sentiment also continues to be affected by concerns about demand, despite the fact that data from the US Department of Energy on Wednesday showed a decrease in oil reserves in the country for the third week in a row, writes MarketWatch.
Also, the market is influenced by concerns about the introduction of large-scale restrictions in connection with the spread of coronavirus.
“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.
The cost of December futures for Brent oil on the London stock exchange ICE Futures by 13:35 Moscow time on Friday is $ 39.17 per barrel, which is $ 1.76 (4.3%) below the price at the close of the previous session. At the same time, during trading, it briefly dropped below $ 39 per barrel.
The price of futures for WTI for November in electronic trading of the New York Mercantile Exchange (NYMEX) by this time is $ 37.02 per barrel, which is $ 1.7 (4.39%) below the level of the previous session.
At the same time, oil may show the second consecutive week of decline, Trading Economics notes.