Oil Prices Slide Down Due To Risks To The Economy
Global oil prices continued to fall on Friday evening on investors' concerns about the prospects for the global economy, while the pace of this decline remains moderate, according to trading data.
As of 20.01 GMT, the price of November futures for Brent North sea oil mix was down by 0.26%, to $ 41.83 per barrel, and November futures for WTI — by 0.35%, to $40.17 per barrel. During the day, the quotes showed approximately the same results.
Traders continue to focus on the situation with the spread of coronavirus. The articulated risks of a "second wave" of infection threaten the prospects for recovery and development of the global economy, which in turn creates barriers to the growth of oil demand.
"This month was not favorable for the oil market. Rising infections, slowing economic recovery, and stalled U.S. stimulus talks have held back a tentative recovery in fuel demand," Reuters quoted PVM oil broker Stephen Brennock as saying.
Meanwhile, oilfield services company Baker Hughes published data showing that in the week ended September 25, the number of operating oil rigs in the United States increased by four, to 183 units. This also did not add optimism to the oil "bulls," as it indicates an increase in the supply of raw materials in the future on the market.