Oil prices fell sharply this Monday (-3%), extending the losses of last week, amid news about the increase in Covid-19 infections in the United States and Europe, which has set off alarms about oil demand, while the outlook for increased supply also penalizes sentiment.
The Brent barrel at this time stands at 40.80 dollars (-3.02%) while West Texas falls to 38.55 dollars (-3.26%).
The United States has reported the highest number of new coronavirus infections so far in two days through Saturday, while in France the new cases hit a record of over 50,000 on Sunday, underscoring the severity of the outbreak.
On the supply side, the Libyan National Petroleum Corporation said on Friday that production would reach 1 million barrels per day (bpd) in four weeks, a faster rise than many analysts had predicted.
OPEC +, the group of the world's largest oil producers, also plans to increase production by 2 million bpd in January 2021, after having reduced production by a record amount earlier this year.
"A resurgence of Covid-19 cases in Europe and North America has halted the recovery in demand," ANZ Research said in a note collected by Reuters.
"If market conditions deteriorate, (OPEC +) will have no choice but to delay the quota increase for a month or two at its December 1 meeting"ANZ added.
Russian President Vladimir Putin indicated last week that he might agree to extend OPEC + oil production cuts.
. (tagsToTranslate) Strong (t) falls (t) oil (t) fear (t) deterioration (t) demand (t) Category: All (t) Category: Market Report (t) Category: Pulses (t) Category: Market Pulse (t) Category: Pulses Raw Materials