After recording plunge in the previous session, oil prices observed remarkable fall on Thursday. In addition to this, rise in the United States stockpiles raised major concerns regarding due to declining demand as the virus spread in Asia and U.S have recorded major surges.
On Wednesday, Brent crude fell up to 0.1 per cent or 6 cents for a barrel that considerably fell by 0141 GMT at $66.60. Oil prices in U.S leaped down 7 cents, or 0.1 per cent to $63.29 per barrel. The fall was recorded after drop by 3.3 per cent in the earlier session.
ING Economics stated in a notice, “A resurgence in COVID-19 cases across parts of Asia is doing little to support the market in the near term.”
Concern over oil prices
After India has recorded more than 2 lakh deaths, nearly to third of the people tested in the country have observed exposure to Covid-19. The daily death toll in the country is mostly around 4,259.
The media reports stated about progress talks carried forward by U.S. and Iran on Tehran nuclear programme on Wednesday. This stimulated sharp fall in prices for the week. The discussion on the programme might lead the sanctions to take a high shift and allow supply to the market.
However, the recent reports informed that reaching to a perfect agreement might take some more time. It has been speculated that Fed might record high rated weights in accordance to economic growth. It could also instigate the investors to lessen oil exposure and susceptibility on other commodities.