Oil price extends losses to settle below $40 level

Mohammed Abdelkhalik
July 30, 2020

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Oil Price Forecast: 30th July 2020

The oil price fell during Thursday’s trading and increased its losses in light of the release of weak economic data that raised concern about global demand and the extent of the damage caused by the Coronavirus crisis.

Government data revealed that the German GDP shrank in the second quarter by 10.1%, as US GDP shrank by 32.9% in the same period.

Coronavirus patients numbers are increasing in a number of countries around the world, which may force the governments of these countries to restore the restrictions of closures, and thus the demand for goods, especially oil, has been affected.

oil price - 30th July 2020

Energy Information Administration announced yesterday that the stock of oil in the United States decreased by more than ten million barrels last week.

In terms of trading, oil price by the time 16:31 GMT, fell 2.6% to $ 40.2 a barrel and recorded the highest price at $ 41.3 and the lowest price at $ 38.7.

The price of “Brent” decreased by 1.9% to $ 42.9 a barrel and recorded the highest price today at $ 43.8 and the lowest price at $ 41.3

USD fell during Thursday’s trading and the depth of its losses following the release of weak economic data that showed a sharp contraction in the United States during the second quarter.

Coronavirus continues to rise in the number of injuries and deaths in the United States and a number of countries worldwide, which increases fears about the return of closures and isolation restrictions.

Today, the US Department of Commerce data revealed that the first reading of GDP recorded a contraction of 32.9% in the second quarter.

The Ministry of Labor data showed that the number of initial jobless claims in America increased by about 12 thousand to 1.434 million during the past week, compared to expectations that indicated an increase of about 1.5 million applications.

In terms of trading, USD index by 18:12 GMT, fell 0.4% to 93.1 points, and recorded the highest price today at 93.6 points, while the lowest price recorded at 93.04 points.

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.