West Texas Intermediate crude oil fell $ 1.06, or 2.7%, to $ 37.73 a barrel, after falling 0.9% yesterday. Brent crude fell $ 1.05, or 2.6 percent, to $ 39.88, after falling 0.7 percent in the previous session.
Italy recorded the largest number of infections daily, Tuesday, and increased cases by at least 120 thousand and 276 cases in the United States, the second largest daily record in a row as the outbreak spread across the country.
“The escalation of Covid 19 across Europe and the US could harm consumption,” said Geoffrey Haley, chief market analyst at OANDA.
He added, “In the absence of concrete evidence that (OPEC Plus) is moving to slow or reverse the pace of production increases, the imbalance between supply and demand limits the rise of the oil wave (that started) before the elections.” The European Commission also lowered its economic forecasts and forecast that the European Union will not see a recovery to pre-virus levels until 2023. Counting and voting trends in the US elections show that Republicans will retain control of the Senate, while Democrats are expected to gain a large majority in the House of Commons. Another factor that puts pressure on oil.
The Organization of the Petroleum Exporting Countries (OPEC) and the United States, including Russia, in what is known as OPEC Plus, are expected to delay the return of two million barrels per day of supplies in January, in light of the decline in demand due to the new isolation measures related to Cupid. 19 ». The market received some support, as US crude oil inventories fell last week, although most of the drop was due to a production halt when another hurricane passed over the Gulf of Mexico.
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