FXEMPIRE
All
Ad
Corona Virus
Stay Safe, FollowGuidance
World
99,321,020Confirmed
2,130,293Deaths
71,367,357Recovered
Fetching Location Data…
Advertisement
Advertisement
James Hyerczyk
WTI and Brent Crude Oil

U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are trading sharply lower on Monday, following through to the downside after posting its first loss in three last weeks.

Traders are being spooked into selling due to a jump in COVID-19 infections in the United States and Europe, which spiked concerns over future crude demand. Meanwhile, worries over increased supply also weighed on prices.

Advertisement
Know where WTI Crude Oil is headed? Take advantage now with 

75% of retail CFD investors lose money

At 07:09 GMT, December WTI crude oil futures are trading $38.82, down $1.03 or -2.58% and December Brent crude oil is at $40.76, down $1.01 or -2.42%.

New Demand Worries as COVID-19 Cases Surge

The decline in WTI and Brent crude oil futures came amid a record surge in new coronavirus cases in the U.S. The country saw more than 83,000 new infections on both Friday and Saturday after outbreaks in Sun Belt states, surpassing a previous record of roughly 77,300 cases set in July, according to data from Johns Hopkins University.

Additionally, White House chief of staff Mark Meadows said Sunday that the U.S. will not get control of the pandemic amid the surge in new cases. Vice President Mike Pence’s chief of staff and three aides tested positive for coronavirus, but his office said he will not quarantine himself.

The resurgence of the coronavirus in Europe has continued apace in recent days, with France reporting a record daily rise in new infections on Sunday, Italy ordering bars to close early and shutting public gyms and Spain issuing a nationwide curfew to stem a worsening outbreak.

Advertisement

Libya Continues to Ramp Up Exports

Libya’s National Oil Corp (NOC) has lifted force majeure on exports from the ports of Es Sider and Ras Lanuf, it said on Friday, adding that output would reach 800,000 barrels per day (bpd) within two weeks and 1 million bpd in four weeks.

Libyan oil output has recovered to about 500,000 bpd since the end of the blockade, far from the 1.6 million bpd it was producing before the country’s civil war.

Daily Forecast

Oil prices could continue to weaken over the near-term due to the unexpected speed of the ramp-up of Libyan exports. Additionally, the resurgence in COVID-19 cases in Europe and North America has essentially brought the recovery in demand to a standstill.

The markets aren’t in major trouble yet, but if the sell-off starts to accelerate to the downside then OPEC+ will have to delay its plan to increase production reductions, currently scheduled for January 1.

Last week, Russian President Vladimir Putin indicated he may agree to extending OPEC+ oil production reductions. This provided a little support so we are confident that an OPEC+ decision to make the move would be supportive for prices.

For a look at all of today’s economic events, check out our economic calendar.
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker

  • Your capital is at risk
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US