Oil Prices Tumble on Europe-Wide Lockdowns
Oil prices fell more than 3% Monday on fears over a whole new wave of coronavirus lockdowns across Europe weakening fuel demand, as supply continues to grow.
"The lockdown measures announced by UK and by Italy are just adding to the deteriorating European situation. A lot of traders are now looking at the U.S. and their rising infection rates and wondering if Europe is providing the model for what will happen in the US in the coming weeks.“ Michael McCarthy, chief market strategist at CMC Markets in Sydney comments.
Additionally. concerns over increasing supplies from Libya and Iraq persist, as they offset production cuts by other OPEC members and cause the group's output to rise for a fourth month in October. Furthermore, in the US, the total oil and natural gas rig count rose in October for a third straight month, according to Baker Hughes data. OPEC+ is scheduled to hold a policy meeting over Nov. 30 and Dec. 1.
As a result, Brent crude for January was seen at $36.78 a barrel, down $1.16, or 3.1%, by 02.29 GMT, while WTI shed $1.24, or 3.5%, to $34.55 a barrel. Brent fell 5.8% and WTI - 6% in early trading, hitting lowest levels since May.
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