The fear of lockdowns due to the increase in the number of corona infections has pushed the price of oil again sharply lower on Thursday. The fear is that demand for the most traded commodity in the world is falling again as companies are shifting down. At the same time, OPEC oil cartel is increasing its production.
From August to September, the amount of oil on the market increased by 160,000 barrels per day, according to the counts on which Reuters worked. With less demand and more supply, the price on the futures market falls for subsequent delivery.
From April to June, the question was still raised. The forward market price of Brento oil, the basis for European petrol and diesel prices, fell by 4.3% on Tuesday after the rapid increase in the number of corona infections. This was the biggest drop in two weeks, in early September a barrel cost another $5 more. Also Thursday the decay passed through.
American WTI oil also became 5% cheaper. Oil imports from Japan, the fourth purchaser in the world, turned out to be reduced by 25% in August.
More supply Libya
Unrust contributed to the decline. This week in the oil-rich Middle East, Sheikh Sabahal-Ahmed al-Sabah (91) of Kuwait, who had long authority due to his mediation role in the Middle East. Crown Prince Sheikh Nawaf, the 83-year-old half-brother of the 260-year-old royal family who died in a hospital in Rochester, American, after a sick bed in July, took charge of the oil and member of OPEC oil cartel.
Discussions on the final follow-up at the top of the major oil state, which has close links with the United States, are not over, according to oil traders.
The heads of the worlds largest trading houses also proposed a moderate recovery in oil demand against Reuters, with flat prices in the coming months and possibly even years. Air traffic has barely begun, the demand for kerosene remains.
The offer increased at the same time. The Sarir oil field in Libya was reopened after months of stagnation due to civil war, the director of Arabian Gulf Oil Company confirmed. With over a million barrels of oil a day last year, the country belongs to the medium-sized producers.
Oil traders also watched the approaching debate at 3:00 p.m. last night between presidential candidate Joe Biden and incumbent President Donald Trump.
According to traders, a flaring conflict in the Nagorno-Karabakh region also strengthened the sales series after Armenia called Turkey to account for interference in internal affairs, and a military aircraft was brought down. Turkey denied any involvement.
death of oil boss Sabahal-Ahmed al-Sabah
In Norway, a strike by oil workers was on the way, their production represents the equivalent of 900,000 barrels of oil a day.
stock with likely to expand with 1.4 million barrels of oil.