While oil has been falling amid concerns that the increase in COVID-19 cases in Europe and the United States is reducing demand in two of the world’s largest fuel-consuming regions, the strong US dollar also put pressure on prices.Oil prices fell on Friday.
Brent crude futures for December LCOc1 were down 50 cents, or 1.2%, to $42.66 a barrel by 1226 GMT and West Texas Intermediate (WTI) crude futures for November delivery CLc1 slid 42 cents, or 1%, to $40.55.
Both indicators fell the previous day, but remained virtually unchanged from a week ago.
The pandemic is currently spreading very actively in Europe, Australia and North America. This will potentially affect negative the recovery in oil demand.
Britain imposed harsh COVID-19 restrictions in London on Friday, as some European countries reintroduced curfews and lockdowns to combat the rise in new coronavirus cases. While it is unlikely that it will enter deep lockups as in the first wave of the pandemic, restrictions have begun and these will have an impact on every aspect of our lives, including fuel consumption.
Crude oil plummeted as the dollar headed towards its best week of the month.
OPEC and its allies ‘oil producers’ technical committee concluded its meeting on Thursday, voicing concerns over a weak demand outlook. OPEC + is talking about reducing the current supply cut from 7.7 million barrels per day as another 2 million barrels per day in January.