CONCERNS ABOUT TIGHTENING QUARANTINE MEASURES ARE PUSHING DOWN OIL PRICES

Posted 14 July, 2020

 

The price of Brent oil futures on the London Stock Exchange ICE Futures has fallen by $ 0.76 or 1.78 percent since the beginning of the session. - up to USD 41.96 per barrel. And the price of WTI-type oil on August futures on the New York Mercantile Exchange (NYMEX) fell $ 0.84, or 2.09 percent. - up to USD 39.26 per barrel.

On Monday, Brent fell 0.52 dollars, or 1.2 percent, and WTI fell 0.45 dollars, or 1.1 percent.

The number of coronavirus infections in the world continues to rise, which is a major concern for market participants, writes S&P Global Platts.

California State Governor Gavin Newsom on Monday ordered a temporary halt to restaurants, bars, museums and other indoor establishments.

"Given the negative impact of coronavirus uncertainty on demand, July may be even more challenging for the oil market than previously thought," said Stephen Innes, chief market strategist at financial services company AxiCorp, quoted by MarketWatch.

With the increase in new infections, restrictions are also being tightened in the Philippines, Hong Kong and Australia.

Market participants are also looking forward to a meeting of the Monitoring Committee of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, the so-called OPEC + Group, on 15 July.

According to informed sources, OPEC + countries are preparing to move from August to the second stage of the agreement on production limitation, in which these restrictions will be slightly relaxed.

The business street newspaper The Wall Street Journal writes that Saudi Arabia is in favor of easing the restrictions as demand for "black gold" increases as various countries around the world phase out quarantine measures.

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