Oil falls on pandemic resurgence, frets of more supply

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Oil falls on pandemic resurgence, frets of more supply

Both US and UK crude futures’ prices ebbed off on Friday, mostly heaved down due to a growing concern of a likely second wave of pandemic outbreak in the United States and EU, while a number of EU members alongside US cities had re-imposed pandemic restrictions last week, weighing heavily on crude oil futures’ prices.

Aside from that, market participants appear worried as a pandemic resurgence in the United States alongside Europe would likely to keep a persistent lid on crude oil demand, while fears of more supply in a near-term outlook had kept the investors on their toes.

Crude falters as a climb in Libyan oil output adds to investors’ worries

Apart from a sustained fear of a second wave of pandemic outbreak which has been hindering global economic recovery over the recent weeks, an abrupt upsurge in Libyan crude oil output led to investors’ belief that the global crude oil futures have been heading towards a cataclysmic supply glut as early as by January 2021.

Quoting statistics, on the day’s commodity market round off, UK crude falters 0.3 per cent to $42.93 a barrel, while the US WTI (West Texas Intermediate) crude oil futures’ prices dipped marginally to wind down the day at $40.88 per barrel.

Nevertheless, for the week, Brent crude had registered a weekly gain of 0.2 per cent, while the US WTI crude futures logged a weekly rise of 0.7 per cent.

Meanwhile, addressing to a steeper-than-anticipated holocaust in crude oil demands in an intermediate- to longer-term outlook ahead of a winter which analysts fretted could soar the United States’ pandemic death toll above 400,000, a head of commodity research at the National Bank of Australia, Lachlan Shaw said, “The reality is that we’re now seeing a pretty active spread of the pandemic across Europe and it’s spreading again in North America, and that potentially will weigh on oil demand recovery”.