Oil continues its losses and Brent records $ 39

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Oil prices declined today, Thursday, continuing their losses, after losing 5% in the previous session, with governments re-imposing restrictions to contain a second wave of infections with the Coronavirus, amid indications of a growing global supply glut.
During trading, US West Texas Intermediate crude futures were down eight cents, equivalent to 0.21% to $ 37.31 per barrel, while Brent crude futures fell 12 cents, or 0.31%, to record $ 39.
Amidst the increasing number of “Covid-19” injuries in Europe, France imposed the necessity of homes from tomorrow, Friday, except for necessary activities, while Germany will close bars, restaurants and theaters from November 2 until the end of the month.
“Demand outlook is deteriorating as a second virus wave sweeps across the United States and most of Europe,” said Margaret Young, strategy at DailyFX. Tightening social distancing measures and increasing closures may have a greater than expected impact on energy demand.
“The return of the pandemic to the growth is pressuring OPEC to postpone its planned production increase in January,” INZ Research said in a note.
The Organization of the Petroleum Exporting Countries and its allies, in what is known as the “OPEC +” group, intend to reduce production cuts in January 2021, from the current 7.7 million barrels per day, to 5.7 million barrels per day.
On Wednesday, US Energy Information Administration data provided new evidence of a growing glut. US crude inventories increased by 4.3 million barrels in the week ending October 23, an increase that exceeded expectations. (Reuters)

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