Another significant fall in the price of crude oil was observed on Thursday. Such instability continues to strain investors, who have begun to seriously think about adjusting their work. The situation is further worsened by another reduction in raw material reserves in the US, as confirmed by the official statistics from the US Department of Energy on Wednesday.
The market began to feel significant pressure after the news that the prospects for recovery and growth of the global economy remain uncertain. This means that demand for crude oil is also unlikely to significantly strengthen in the near future. Investors are still anxious about the unceasing increase in the cases of coronavirus infections across the globe. Analysts are now beginning to warn about the imminent second wave of the pandemic which can cause severe global damage to the already weak global economy.
According to the official report from the US Department of Energy, the level of commercial oil reserves in the country declined by 1.64 million barrels over the past week, which ended September 18. This pushed it to the level of 491.41 million barrels.
The level of gasoline reserves in the fuel sector also decreased by 4.03 million barrels and reached the level of 227.5 million barrels. The distillate level was also adjusted down by 3.36 million barrels, and its current value fell to 175.94 million barrels. It should be noted that this drop in the level of distillates occurred at the maximum rate that was last recorded in March of this year.
The price of futures contracts for Brent crude oil for delivery in November on the trading floor in London fell 0.98% or $0.41, which forced it to fall to the level of $41.36 per barrel. Recall that Wednesday's trading closed with an increase of 0.1% or $0.05, which left it in the range of $41.77 per barrel.
The price of futures contracts for WTI light crude oil for delivery in November on the electronic trading platform in New York also lost 1.28% or $0.51, which pushed the price to the level of $39.42 per barrel. Wednesday's trading ended in a positive note with a rise of 0.3% or $0.13, and the final price was fixed at $39.93 per barrel.
Worst of all, the current fall in the oil market does not seem to be limited. Most experts believe that the fall will continue further, as the pressure on black gold remains significant. Moreover, oil is extremely sensitive to the situation around the coronavirus infection, news of an increase in the incidence, and the possible introduction of new quarantine restrictive measures puts the market in a state of panic. Whether how long this will last, no one can tell.
