Oil Falls Below $40 as Demand Worries Intensify

  • The market is worried about oversupply of oil.
  • The recovery of the US job market slowed down, and personal income fell in August.
  • On Thursday night, President Trump and the First Lady tested positive for Coronavirus.

On Friday, US crude oil continued overnight decline, refresh more than a two-week low at $37.29. The cloth oil fell below the $40 mark, news sources confirmed, triggering fears of the market for the spread of the epidemic. The United States Crude oil is currently reported at $37.40, a decrease of 3.46%.

Brent Crude may refer to any or all of the components of the Brent Complex, a physically and financially traded oil market based around the North Sea of Northwest Europe.

Brent crude oil is currently reported at $39.50, a decrease of 3.49%. On Thursday, because the epidemic continued to spread, and OPEC’s increase in production last month, oil prices were put under pressure.

US crude oil fell more than 3%, and on Friday it set a more than two-week low with the news of Trump’s diagnosis with coronavirus. The survey found that OPEC’s average output in September increased by 160,000 barrels per day from August.

IHS Markit’s bulk commodities maritime data show that OPEC member countries shipped 18.2 million barrels per day in September, and 17.53 million barrels per day in August. Saudi Arabia’s exports rebounded to more than 6.25 million barrels per day. The market is worried about oversupply.

At the same time, the recovery of the US job market slowed down, and personal income fell in August. The unexpected slowdown of US manufacturing activities in September also dampened the market’s worries about the US economic recovery.

The current anticipation of stimulus from both parties in the United States is one of the few factors supporting oil prices, but there are still clear differences between the two parties. However, analysts said that Trump’s diagnosis may increase the possibility of stimulus, which may partially alleviate the downward pressure on the oil market.

Also, the acceleration of the bankruptcies of US shale oil companies has also partially offset the expected increase in OPEC production. In general, the continued spread of the epidemic has hit the market’s expectations for economic recovery, and with Trump’s diagnosis, the market’s worries have further increased, which will further pressure oil prices.

As demand worries dominate, the recent bullish factors may have limited boosting effects on oil prices, and the oil market has been generally down recently. Below, 23.6% of the 43.78/6.5 points are located at $34.97, and the top is focusing on the 200-day moving average at 39.28.

Trump Diagnoses, Demand Concerns Further Intensify

On October 2, 2020, Trump was reported to have tested positive for the coronavirus and to be quarantining at the White House with mild COVID-19 symptoms.

Oil prices fell 3% on Thursday, as the increase in the number of new cases of new coronavirus worldwide hit the demand outlook. On Friday, with the diagnosis of US President Trump, the oil market accelerated its decline.

The coronavirus epidemic data indicators in the French capital, Paris, continued to deteriorate on Thursday. French officials urgently discussed response measures on October 1.

According to the latest statistics officially released by Paris, the infection rate of Paris Coronavirus reached 263 infected per 100,000 people, which is still higher than the official maximum alert threshold (250 infected per 100,000 people), and Continues to rise.

Among people aged 60 to 69 in Paris, the infection rate has also risen to 132 infections per 100,000 people, which is also above the alert threshold.bIn Paris, the occupancy rate of intensive care beds for patients with the coronavirus disease has also passed the 30% warning line, reaching 33.4%, and continues to rise.

In the United States, on October 1, New York Governor Andrew Cuomo updated the public on the progress of the new coronavirus epidemic in New York at a press conference.

Up to now, the diagnosis rate in 20 key epidemic areas in New York has increased, from 5.5% to 6.5%, with Brooklyn in New York City being the most serious. The increase in the epidemic in New York City is one of the reasons for the increase in the overall epidemic in New York State.

President Trump said on Friday that he and the First Lady, Melania Trump, tested positive for the new coronavirus. Earlier in the day, Hope Hicks, one of the core assistants of President Trump, tested positive for the new coronavirus.

Hicks, 31, accompanied Trump on Air Force One on September 29, traveling from Washington to Cleveland, Ohio to participate in the first debate of the general election. After Hicks tested positive, Trump also got tested and was subsequently diagnosed.

Trump said he and the First Lady spent a long time with Hicks. The news of Trump’s diagnosis has triggered market concerns about the spread of the epidemic in the United States. Affected by this, U.S. crude oil continued Thursday’s decline on Friday.

[bsa_pro_ad_space id=4]

Benedict Kasigara

I have been working as a freelance editor/writer since 2006. My specialist subject is film and television having worked for over 10 years from 2005 during which time I was the editor of the BFI Film and Television.

Leave a Reply