Oil plunges 5% as global economy swoons in line with spike in pandemic cases

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Oil plunges 5% as global economy swoons in line with spike in pandemic cases

On Monday, both US and Brent crude futures’ prices had been hit with a hefty whiplash of more than 5 per cent, as a steady spike in pandemic cases in Europe and in the United States that stoked frets of a second wave of pandemic outbreak alongside concerns of a wobbling global demand, appeared to have pushed the oil futures’ prices lower, while a robust return of Libyan oil output had added to the fears of a staggering supply glut.

In point of fact, Monday’s faltering of crude oil futures’ prices had been in alignment with other equity and commodity markets, which had also shown an abrupt turnaround in risk-appetites as a number of European majors alongside the United States looked to reimpose lockdown measures, casting fresh doubts over possibilities of an economic recovery.

Aside from that, global output rose over the weekend as workers in the Libyan sub-Saharan oil fields had started off operations, though the extent of oil production remained unclear.

However, according to Refinitiv shipping data, a Suezmax oil tanker was found to have made its way into the Marsa El Hariga terminal of Libya.

Crude oil futures' prices pull back sharply amid mounting demand concerns

Citing statistics, on the day’s commodity market closing bell, the UK crude futures’ prices had faltered 3.96 per cent to $41.44 per barrel, while the US West Texas Intermediate crude oil futures’ prices were jolted 4.38 per cent down to $39.31 a barrel.

Meanwhile, addressing to a commodity market which appears to be in the brisk of further downturns, a director of market research at Tradition Energy in Stamford, Connecticut, Gary Cunningham said on the day’s commodity market round off, “We’re seeing more depressing news on jet fuel demand.

We’re looking for a much softer market. The economic picture doesn’t look as rosy as it did before”.