The increase in the number of coronavirus cases globally and the concern about the decrease in demand for oil reduced the price of the commodity in world markets.
Oil prices fell due to rising Covid-19 cases in various countries and concerns about the return of restrictions.
Further travel restrictions in Europe have affected the psychological conditions of the market and raised concerns about demand.
This has caused the price of oil to lose more than 2% of its value.
Brent crude traded down 2.2% at $40.86 a barrel. WTI crude oil fell 2.3% to $38.94.
Oil demand has increased with the opening of the cold season in the Northern Hemisphere. However, the return of restrictions due to the resurgence of the coronavirus cases could put pressure on demand and further reduce prices.
Republicans care more about the oil market
Seyyed Mohammad Ali Khatibi, the former representative of Iran in OPEC, said that Democrats are different. He stated that Republicans care more about the oil market. He continued that the next President of the United States may pursue new policies in the field of energy and oil industry. Still, Trump does not pay much attention to international agreements. Trump has promised to reduce restrictions on methane production and extraction during his second term.
The former Iranian representative in OPEC added that the economy has been weakening not only in the United States but the whole world due to the coronavirus pandemic. The US presidential election is essential for the oil market.
OPEC Plus reduced its production. Thus, if this decline continues, the price of oil will reach less than $20 in world markets, Khatibi stated. Unfortunately, the coronavirus pandemic has caused a great shock to the oil market. It has restricted all economic activities in the world, leading to a decline in global energy prices. The global oil price is expected to increase with the discovery of the Coronavirus vaccine.
Covid-19 cases have skyrocketed again
The drop in WTI crude oil and Brent futures comes at a time when coronavirus cases in the United States are skyrocketing. The country registered more than 83,000 new infections daily both on Friday and Saturday, according to data from John Hopkins University.
Besides, the White House chief of staff, Mark Meadows, said on Sunday that the United States would not have control of the pandemic because of the explosion of infections.
The rise in coronavirus cases has also continued at a rapid pace in Europe in recent days as France reported a new daily record for new infections on Sunday. Italy ordered bars to close earlier than usual and the closure of public gyms. Spain approved a national curfew to prevent the outbreak from worsening.
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