Oil market shows the maximum decline since May

On Friday, oil prices rise after falling the day before their lowest levels in five months, Interfax reports.

Brent fell by 7%, WTI – more than 9%.

Experts note that the growth of production in Libya is putting pressure on the market; it coincided with the second wave of coronavirus in Europe and the United States.

“It is already clear that Europe has been covered by the second wave of the coronavirus pandemic, and the recovery in oil demand will not be what the market expected. Consumption in Europe will decline,” said Jeffrey Halley, an analyst at Oanda Asia Pacific.

The cost of December futures for Brent oil on the London ICE Futures exchange on Friday is $37.8 per barrel, which is $0.15 (0.4%) higher than the price at the previous session's close. As a result of trading on Thursday, these contracts fell by $1.47 (3.8%) to a minimum value since May 29.

The price of December futures for WTI on the New York Mercantile Exchange (NYMEX) is $36.2 per barrel, which is $0.03 (0.08%) higher than the previous session's level. On Thursday, futures fell by $1.22 (3.3%) to the lowest since June 1.

This week, French President Emmanuel Macron announced a "new stage" in the fight against the spread of COVID-19, which will include a partial lockdown from Friday. The new restrictive measures will last until at least December 1. Germany announced the closure of a wide range of public institutions due to the increase in the incidence of COVID-19.

Meanwhile, in the United States on Thursday, a new record for the number of cases of COVID-19 was recorded – more than 91 thousand new cases.

Tags: oil, EU, USA, coronavirus, price, Germany, quarantine, pandemic, decline in production, crisis

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