- WTI futures fall nearly $ 2 to three-week lows at $ 37.00.
- Oil prices plunge amid concerns about the consequences of the second wave of COVID-19.
- The EIA reports an increase in US oil stocks.
WTI futures The first month have depreciated nearly $ 2 on Wednesday, falling back to a week’s lows of $ 37, with limited upside attempts below $ 37.45.
Oil prices plummet on concerns about new lockdowns
The benchmark US oil index has tumbled about 5.5% on the day amid market concerns that measures to curb the second wave of coronavirus will depress demand for crude.
News of the growing number of infections in Europe and the US, which have soared to new record highs, and new lockdowns imposed in France and Germany have sent oil prices and equity markets plummeting.
Additionally, the US Energy Information Administration reported today that the number of US oil stocks rose above expectations in the week of October 23 due to a record increase in production. This has increased the negative pressure on oil.
Similarly, UK benchmark Brent crude has tumbled around 5%, to hit fresh four-month lows below $ 38.80.
Credits: Forex Street
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