Oil falls more than 4% this Thursday and records its worst session since mid-June. Crude prices are welcoming the negative impact of renewed restrictions to deal with the constant outbreaks of Covid around the world.
France has already asked its citizens not to leave home, except for essential activities. Germany has ordered the closure of bars, restaurants and theaters from November 2 until the end of the month.
"The medium-term outlook for oil continues to deteriorate as restrictions begin to 'eat into' its demand in Europe," acknowledges the expert Stephen Innes, chief strategist of Axi Traders.
That deterioration in demand is being closely monitored by OPEC and its allies. "Its production cut should go further to compensate for the weak demand forecasts," they warn from Commerzbank. If nothing changes, the organization is expected to meet again on November 30 to decide its new roadmap.
Another nail in the oil coffin is being Libya and its increased production, which is also weighing on investment sentiment. It should be remembered that the hurricane season recently raised crude prices due to the expectation of tighter demand in the short term, but experts expect it to weaken in the coming days.