Oil prices fell and Brent crude reaches its lowest level in 4 months

Mohammed Abdelkhalik
October 2, 2020

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Oil Price Weekly Outlook – 2nd October 2020

Global oil prices extended their decline with the opening of the US market on Friday to deepen their losses for the second day in a row, to record US crude its lowest level in 3 weeks, and Brent crude its lowest level in four months, due to trading investor aversion to risk and a wave of selling in commodity markets, after the President announced The American “Donald Trump” is infected with the new Coronavirus, and pressures on prices also The rise in Libya’s production at a faster rate than market expectations.

US crude fell nearly 4.5% to $ 36.83, the lowest level since September 11, from the opening level at $ 38.56, and recorded its highest level at $ 38.63, and Brent crude fell 4.3% to $ 39.00 a barrel, the lowest since June 16. , From the opening level at $ 40.74, and the highest level at $ 40.76.

Oil Price - 2nd October 2020

On yesterday’s settlement, oil prices 3.2%, and Brent crude futures fell by 3.3%, the second loss in the last three days, due to the acceleration of selling in the riskier asset markets.

In a tweet on Twitter, Donald Trump said that he and first lady Melania Trump had tested positive for the Covid-19 virus and that he had begun the quarantine process.

According to the statistics of the “Reuters” agency, the number of cases of Coronavirus worldwide has increased to more than 34 million, an increase of nearly two million cases from the end of last week.

During this week, deaths from the disease exceeded the one million mark, with the number of deaths and injuries accelerating in many countries, which prompted some global governments to tighten some restrictions again to prevent the spread of infection, which renewed concerns about the levels of global demand for fuel.

In Libya, sources told Reuters that oil production in the country rose to 270 thousand barrels per day, with the intensification of operations and exports.

The current rise in current production is faster than market expectations, with the Libyan National Army easing the blockade of many oil installations.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.