The oil price fell more than 2% as the worsening epidemic raised concerns about demand.
Oil prices fell more than 2% on-demand concerns caused by the new wave of the coronavirus pandemic. This is evidenced by data from the exchange trading on Investing.com on Monday, October 26.
The cost of December futures for Brent oil on the London ICE Futures exchange is $41.07 per barrel, which is $0.7 (1.68%) below the price at the close of the previous session.
The price of WTI crude oil futures for December in electronic trading on the New York Mercantile Exchange NYMEX is $39.15 per barrel, which is $0.7 (1.76%) below the level of the previous session. The previous trading ended at $42.07 and $39.85, respectively. At the end of the last week, Brent fell 2.7%, WTI — 3.1%.
“The recent surge in COVID-19 cases and further travel restrictions in parts of Europe are weighing on sentiment, raising concerns about what this all means for demand,” analysts at ING Economics said.
Recall that restrictions on oil production are being lifted in Canada. The restrictions were introduced last year to boost market oil prices.
Back in mid-October, it was reported that oil prices were rising due to a decrease in US inventories. US oil inventories fell 5.4 million barrels last week. The stocks of gasoline and distillates also decreased.