In the wake of a catastrophic demand crunch of crude oil futures amid a spike in pandemic cases in the United States and Europe, both US and UK crude futures scheduled to be expired on November 20 had faced off a violent sell-off wave on Monday, while a steeper-than-anticipated rebound in Libyan crude production had stoked fears of slandering a supply glut.
In point of fact, crude oil futures’ prices had opened up Monday market broadly lower, while media headlines revealing a lack of progress in US stimulus talks alongside a re-imposition of pandemic restrictions in a number of European countries had taken a heavier toll on investors’ sentiment.
Apart from that, an abrupt spike in Libyan crude output had added to further strain amid worries of a withering demand outlook.
Crude oil extends losses as pandemic hurts demand optimism
In factuality, both US and UK crude futures’ prices had fathomed a loss of more than 3 per cent on Monday, largely catalysed by a baleful demand outlook, and had extended a 2 per cent weekly percentage decline logged last week, while analysts referred to a second wave of pandemic outbreak as a major market mover for the black gold futures’ prices.
Darkening the oil prices outlook further, Libya’s National Oil Corp. had ended a force majeure of the remaining facilities which had been closed due to an eight-month blockade of exports following a cascade of armed clashes with the eastern forces.
Quoting statistics, on Monday’s commodity market closure, the UK crude collapsed as much as 3.1 per cent to $40.46 per barrel, while the US West Texas Intermediate crude oil futures’ prices faltered 3.2 per cent to settle down at $38.56 a barrel.
Both crude oil futures’ fell roughly 2 per cent last week as beforementioned. Meanwhile, citing a likely rise in global oil output followed by a restoration of Libyan crude exports, a head of oil markets at Rystad Energy, Bjornar Tonhauger said on the day’s commodity market wind down, “It’s a dark Monday in the oil market.
We have long warned that a ‘second wave’ of strict coronavirus restriction measures could be re-imposed, and it’s now happening for real. ”