Oil totters over 5% to four-month lows as pandemic worries jitter

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Oil totters over 5% to four-month lows as pandemic worries jitter

On Wednesday, both US and Brent crude futures’ prices took a tattering header of more than 5 per cent, dragging the UK crude futures down to a four-month low as concerns mount over a second wave of pandemic outbreak in the United States and Europe, while Fed’s forecast of a further decline in crude oil demands alongside a robust US crude inventory build last week weighed heavily on investors’ morale.

In point of fact, Wednesday’s havoc-scale tottering of crude oil futures came against the backdrop of a flurry of disdainful market data that underscored probability of a long-term plunge in global crude oil demands.

On top of that, US Energy Information Administration had revealed late on the day that the US crude stockpiles rose more-than-expected last week which in effect had added to further strains.

Oil stomachs mass-scale plunge amid slandering demand outlook

Citing statistics, amid a series of dismal data pouring fresh scorns over crude oil demands in a near- to intermediate-term outlook, the UK crude futures’ prices tumbled 5.1 per cent to $39.12 per barrel, while the US West Texas Intermediate crude oil futures’ prices had wrapped up the day down by 5.5 per cent to $37.39 per barrel.

Notably, Wednesday’s whiplash in the commodity markets had sent the UK crude futures’ prices to their lowest closure since June 12, while US crude futures scheduled to be expired on November 20 fell to its lowest level since October 2.

More importantly, both US and UK crude futures’ prices had witnessed their steepest intra-session plunge since September 8. Meanwhile, addressing to a number of renewed pandemic restrictions adopted by a raft of major European economies including Germany and France, the bloc’s first- and second-largest economy respectively, which in effect had prompted the market participants to turn their tails, President of consultant Lipow Oil Associates, Andy Lipow said on the day’s commodity market round off, “The increase in oil production led to an unexpected build of crude oil, and given the additional lockdowns we are seeing in Europe, that is just further heaping bad news on the oil market.