- The reversal of WTI futures from $ 43 extends to $ 40.
- Coronavirus fears and Libyan output weigh on oil prices.
WTI futures the first month have depreciated for the third day in a row on Friday, returning to the $ 40 area. A combination of COVID-19 fears and increased production from Libya have affected prices.
Crude prices fall on demand concerns
Oil prices have lost around $ 3 in the past three days after hitting a high of $ 43 earlier this week. Investor excitement at the announcement that Pfizer’s coronavirus vaccine was 90% effective led to a 15% rally in WTI barrel in the first two days of the week.
The rally in oil staggered on Wednesday as rising COVID-19 cases in Europe and the US reignited fears about the impact of lockdowns on global demand. Also, the announcement that Libya has increased its oil production to 1.2 million barrels per day has added concerns, increasing downward pressure on prices.
In the United States, Baker Hughes reported that US oil rigs rose for eight consecutive weeks, failing to improve investor sentiment. The total tally of active oil rigs increased by 10 to 236 in the week of November 6, which has contributed to increasing fears about an oversupply.
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