Benchmark oil prices are rapidly declining — the price of Brent has already reached $62 per barrel. The reason was the increase in the incidence of COVID-19 and the third wave of the pandemic in Europe. This leads to the introduction of strict quarantine restrictions, which clouds the prospects for oil demand.
The price of the May Brent crude oil futures fell to $61.98 per barrel by 17:38, according to Investing. This is 4.09% ($2.64) less than at the close of the last trading.
May WTI futures fell 4.45% ($2.74) to $58.87.
“Oil prices are falling on concerns about the third wave of coronavirus in Europe, which could negatively affect the prospects for economic recovery and energy demand,” Interfax quoted Margaret Young, an analyst at DailyFX, as saying.
Think Markets analyst Fawad Razaqzada believes demand will pick up as travel restrictions ease in the coming months, but “the impact of this will be offset to some extent by an increase in oil reserves.”
Recall that the number of deaths from COVID-19 has also increased worldwide. As for the infection rate, the global average increased by 8%, but in Europe, the increase was 12%. At the same time, anti-quarantine protests have not subsided in Europe.