Oil costs fell on Friday, fueled by fears that an increase in COVID-19 instances in the United States and Europe will continue to slow demand in two of the world’s most fuel-intensive regions.
OPEC, a grouping of the Organization of Petroleum Exporting Countries and allied manufacturers adding to Russia, fears that an extended wave of the pandemic and a leap in Lithroughan production could push the oil market into a surplus next year, according to a confidential document noted through Reuters, a much bumble prospect that only a month ago.
Brent futures fell 23 cents to $ 42. 93 a barrel, and West Texas Intermediate crude futures fell cents to $ 40. A barrel.
“The truth is that we are now seeing an active spread of the pandemic in Europe and it is spreading to North America, and this will potentially affect the recovery in oil demand,” said Lachlan Shaw, Head of Commodity Studies at National Bank. . Australia.
Some European countries have renewed curfews and closures to combat an increase in new cases of coronavirus, and Britain will apply stricter restrictions to COVID-19 in London on Friday.
A panel of OPEC officials, called the Joint Technical Committee, discussed its worst situation in a monthly virtual assembly on Thursday, which meant that the advertising stocks of the world’s top consumers remained above the five-year average in 2021, which fell under that mark.
The group’s Joint Ministerial Monitoring Committee (JMMC) will publicize the prospects at its meeting on Monday. The JMMC can make a policy recommendation.
“We expect strong words from Monday’s assembly on eliminating non-compliance (members),” said Paola Rodríguez-Masiu, senior oil market analyst at Rystad Energy. or whether denigration will remain on the verbal level. “
OPEC is expected to ease its existing cuts of 7. 7 million barrels in line with day (b/d) of 2 million bpd in January.
In the United States, drillers have begun adding oil rigs since they were reduced to a minimum of 15 years in August; this week they added the maximum oil rigs in a week from January, expanding the number from 12 to 205, the baker power company said. Hughes Co.
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