- Weakness in the stock markets and the strength of the dollar put downward pressure on oil.
- WTI loses almost 4% and reached $ 58.50
The oil price is suffering a sharp drop on Tuesday, erasing the bounce that took place at last week’s close and is again close to the prior week’s low of $ 58.25
Wall Street futures point to a negative opening with falls around 0.35% on average, while in Europe the main markets are losing 0.50%. The caution generated an increase in the demand for safe haven assets favoring bonds.
The context also favored a rise of the dollar and the yen. The advance of the greenback pushed the price of oil further down. The WTI barrel loses 4.25% and operates at $ 58.95, while the Brent does at $ 62.85, also with a fall of more than 4%.
Fears of a lower demand for crude given the increase in restrictions due to the advance of the coronavirus also play against. Today the eyes of the market will continue on the equity markets. In addition, Fed Chairman Powell and Treasury Secretary Yellen will appear before a congressional committee.
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