Oil prices fall on deteriorating demand prospects

Oil prices fall on deteriorating demand prospects

Oil prices fall on deteriorating demand prospects

Oil prices continue to slide on fears that a renewed rise in the global incidence of COVID-19 will slow the global economic recovery and restrict oil demand.

The cost of November futures for Brent oil on the London ICE Futures exchange by 14:30 Moscow time was $ 42.25 per barrel, which is $ 0.18 (0.42%) lower than 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 decreased by $ 0.22 (0.54%) – to $ 40.38 per barrel.

According to the statistical website Worldometer, the number of deaths infected with COVID-19 has exceeded 1 million.In total, since the beginning of the pandemic, more than 33.3 million cases of coronavirus infection have been diagnosed in the world.

“The increase in COVID-19 cases is seen as a potential threat to a recovery in demand, while production in Libya is recovering at an inopportune moment. Production in Libya has almost tripled – from 90 thousand b / d to 250 thousand b / d,” they note ANZ analysts quoted by S&P Global Platts.

Traders are also awaiting the release of the US Department of Energy's weekly report on energy reserves in the country, which may show the first increase in oil reserves in three weeks.

Oil reserves in the United States last week increased by 1 million barrels, experts surveyed by Bloomberg predict. 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 publish a weekly report on energy reserves in the country tomorrow at 17:30 Moscow time.

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.

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