- WTI falls more than 2% after rising for two days.
- Sharp decline in European markets and in Wall Street futures put downward pressure on oil.
- Ahead: US and EIA inventory data.
Crude oil prices are falling significantly on Thursday after having risen sharply in the previous two days. WTI is trading just below $ 40, having lost momentum again below $ 41.50.
Context hurts WTI
The rising number of new coronavirus infections in Europe and new restriction measures reignited concerns about an uneven recovery in global energy demand. France announced that it will begin imposing night curfews in major cities for four weeks and Germany said it plans to announce new restrictions. New restrictions are also being analyzed in the UK.
It is Worrying climate due to the impact on the economy weighing on the stock markets. In addition, the lack of agreement in the US for new fiscal stimuli.
The context is hitting WTI on two sides: risk aversion and the rise of the dollar. The DXY erased the losses of the last hours, and hit a week high above 93.60.
On Wednesday the price had received a boost from the report of the decline in US inventories by 5.4 million barrels in the week ended October 9. On Thursday it will be the turn of the stock data of the Energy Information Administration (EIA). Also in the US will be known the weekly report of unemployment benefits and the Philly Fed.
Credits: Forex Street
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