Oil prices decline with the increase in Coronavirus pandemic cases
Oil Prices Outlook – 8th December 2020 Oil prices witnessed a decline during trading today,…
Oil prices rose during today’s trading session in the European market, to maintain their gains for the second consecutive session. Plus, with the current production policy, in addition to excluding US President Joe Biden from using the strategic reserves of oil to calm prices.
By 09:50 GMT, West Texas Intermediate (US) crude rose by 1.1% to trade around the level of 81.79 US dollars per barrel, from the opening level of today’s session at 80.92 dollars and recorded the lowest price at 80,700 dollars per barrel.
The international crude “Brent crude” also rose by 1.3 percent to the level of 83.12 dollars a barrel, compared to the opening level of 82.09 dollars, and it reached, early in the session, the lowest price at 81.85 dollars a barrel.
And at the conclusion of yesterday’s trading, US crude oil managed to achieve a gain of 0.1% in the first daily gain during the last four sessions, after recording earlier its lowest level in two weeks at 79.33 dollars per barrel, and Brent crude also gained 0.2% after recording the level of 80.70 Dollars per barrel, the lowest since the fifth of November.
It is worth noting that the main reason why prices recorded their lowest levels in two weeks is the growing fears about the decline in global demand for fuel during the remainder of this year 2021, especially after OPEC cut demand expectations by 300,000 barrels.
Last week, the Organization of the Petroleum Exporting Countries (OPEC) lowered its forecast for global oil demand during the last quarter of this year by 330 barrels per day from its estimates last month, while high energy prices at the present time impede the economic recovery from the Coronavirus pandemic.
On the other hand, the Paris-based International Energy Agency said on Tuesday that the recovery in the oil market may slow down, as prices that hit three-year highs last month helped increase global supply, especially in the United States.
Most energy experts ruled out the idea of US President Joe Biden using the strategic reserve of crude to calm prices at the present time and stressed that it is expected to resort to other options.
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.
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