U.S. Oil Market Outlook Likely to Fall to 36 US Dollars

  • The U.S. dollar index is expected to record its biggest weekly gain this month.
  • Brent crude oil futures price was reported at 42.81 US dollars per barrel, down 0.81%.
  • The number of new coronavirus infections in the Midwest and other regions of the United States has surged.

In the European market on Friday, U.S. crude oil futures prices fluctuated down by about 1% and traded at around $ 40. A strong U.S. dollar impacted oil prices. In addition, the market was worried that the surge of new coronavirus pneumonia cases in Europe and the United States would reduce these two in the world’s largest fuel-consuming regions.

US crude oil futures price index.

As of press time, the US crude oil futures price was reported at 40.96 US dollars per barrel, down 0.70%; the Brent crude oil futures price was reported at 42.81 US dollars per barrel, down 0.81%.

Kazuhiko Saito, a chief analyst at Fujitomi Co., said that due to the increase in the number of new coronavirus pneumonia cases, the weakening of fuel demand in Europe, and the rise in the US dollar, market concerns have weighed on investor sentiment.

Some countries in Europe are restoring curfews and lockdowns in response to the surge in new coronavirus cases. The UK imposed stricter restrictions on the new crown virus epidemic in London on Friday.

The number of new coronavirus infections in the Midwest and other regions of the United States has surged, and the number of new infections and hospitalizations has risen to record levels. This is a bad sign that as temperatures get colder, a nationwide pandemic will return.

The U.S. dollar index is expected to record its biggest weekly gain this month, due to the surge in new coronavirus cases and the hindrance of the progress of the US economic stimulus plan, making investors seeking safe assets nervous.

A stronger U.S. dollar is bound to suppress the prices of commodities such as crude oil denominated in U.S. dollars.

The results of a new poll conducted by the US Public Affairs Research Center this month show that most Americans are strongly critical of the US government’s response to the new coronavirus pneumonia epidemic.

The survey shows that 65% of Americans said that the US government is not serious enough about the new coronavirus pneumonia epidemic in the United States, 74% of Americans said that “the United States is moving in the wrong direction.” In terms of economic performance, 51% of Americans stated that they “disapprove of the way the US government has responded to the US economy”; 61% of Americans described the US economic situation as “bad”.

The number of confirmed diagnoses in many European countries is increasing, and the number of confirmed diagnoses in the United States is nearly 8 million. According to the latest epidemic data released by the World Health Organization, a total of 38,394,169 confirmed cases of new coronavirus worldwide, including 1,089,047 deaths.

According to real-time statistics from Johns Hopkins University in the United States, on the 16th, a total of 38,835,622 cases of new coronavirus confirmed worldwide, including 1,097,189 deaths.

The latest forecast data released by the US Centers for Disease Control and Prevention on the 15th show that by November 7, the cumulative number of new coronavirus deaths in the United States may reach 240,000. Forecasts show that in the week from November 1st to 7th, the number of new coronavirus deaths in the United States may reach 3,400 to 7,100.

US Democratic presidential candidate Biden criticized President Trump’s response to the new coronavirus epidemic on Thursday. After the two candidates canceled the original second debate, they competed in a televised town hall.

Biden delivered a speech to voters in Philadelphia through the media, pointing at Trump’s handling of the epidemic and criticizing the latter for downplaying the threat of the epidemic. The epidemic has killed more than 216,000 Americans. Biden said he didn’t tell anyone because he was worried about causing Americans to panic.

Coronavirus

Trump defended his actions and personal actions in response to the epidemic, including holding an event in the Rose Garden of the White House in which few people wore masks or maintained social distance, which eventually caused many participants to contract the epidemic.

Although OPEC Secretary-General Barkindu said that OPEC and its non-OPEC allies will continue to cooperate to ensure that the oil price crash will not repeat itself. OPEC is trying to maintain stability, and OPEC+ is focused on completing compensation cuts in December.

In addition, OPEC sources said on Thursday that the bearish demand outlook and increased supply in Libya may mean that OPEC may postpone existing production cuts until next year. OPEC will hold a meeting from November 30 to December 1 to formulate policies.

Hiroyuki Kikukawa, general manager of Nissan Securities Research Department, said that everyone is paying attention to OPEC+ actions starting in January next year. Due to the uncertainty of OPEC+’s future policies and the US presidential election, oil prices may remain within a narrow range for a period of time.

Only $1/click

Submit Your Ad Here

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