Global oil prices fell 3% on Monday as lockdown and business shutdowns imposed in the wake of a resurgence of the coronavirus in the UK.
According to Reuters, Brent fell $1.54, or 3 per cent, to .7 50.72 a barrel, the highest level since March, after rising 1.5 per cent last Friday.
US West Texas Intermediate fell 4 1.42, or 2.9 per cent, to .6 47.68 a barrel, the highest level since February, up 1.5 per cent last Friday.
Monday’s drop in oil prices came after seven consecutive weeks of rising prices as investors focused on the results of the COVID-19 vaccine.
Chiyoki Chen, the chief analyst at Sunward Trading, said the UK had a tough lockdown to fight the new wave of coronavirus and the opportunity to take a new position by correcting its mistakes in the face of travel bans in other European countries. While available, Bridget again, the threat of every conversation also hurt the market.
Brent could fall below 50 50 a barrel and West Texas Intermediate could fall below 45 45 this week as investors seek to adjust positions before the Christmas holidays, Chen said.
The Prime Minister of the United Kingdom Boris Johnson will preside over an emergency meeting on Monday to discuss international travel and outbound shipments and shipments, as record cases have been reported in one day of COVID-19.
The real issue is that Boris Johnson has to finalize the agreement on Bridget as well.
In this new wave of the coronavirus, experts say the rate of virus transmission is far higher than the original, which has raised fears of widespread, forcing several European countries to relocate travellers from the UK. Close your doors.
According to Kazuhiko Saito, chief analyst at commodities broker Fujitomi Co, the oil market has been booming in recent months, ignoring the negative factors and pointing out that if a vaccine is made, it will affect the world. Economic growth will resume, but this new form of the virus has suddenly dashed investor expectations for 2021.
Negative effects have also clouded the prospect of a weekend deal for a $900 billion Coronavirus aid package.
Meanwhile, Russian Deputy Prime Minister Alexander Novak said on Saturday that global oil demand is still between 6 million and 7 million barrels per day, lower than before the crisis.