7th December 2020: Oil prices declined on Monday across the world.
Baaghi TV: On Monday the oil prices slipped after being high for months following the continued surge in coronavirus cases globally forcing a series of renewed lockdowns.
According to reports, Brent crude oil futures were down 21 cents, or 0.4 per cent, at $49.04 a barrel, while West Texas Intermediate oil futures fell 25 cents, or 0.5pc, to $46.01 a barrel. Both benchmarks gained for a fifth consecutive week last week.
“Crude pared earlier vaccine roll-out gains after Los Angeles county had another record high in coronavirus cases and South Korea raised their alert level,” said Edward Moya, senior market analyst at OANDA.
He also said, “COVID-19 restrictive measures and lockdowns across the globe seem poised to keep crude prices heavy in the short term.”
The strict new restrictions in Southern California, which is the world’s top oil comsumer called for bars, hair and nail salons and tattoo shops to close again.
Also weighing on prices, US energy firms last week added oil and natural gas rigs for the 11th time in 12 weeks as producers return to the good pad even as most are cutting spending this year and next.
State media in Iran said on Sunday that it has instructed its oil ministry to prepare installations for production and sale of crude oil at full capacity within three months.
“Adding to the pressure on oil prices is the potential Iranian increase to production in three months. Iran is optimistic the US will ease restrictions if they return back to the 2015 nuclear deal,” Moya added.
Still, rapid demand recovery in China and developments in COVID-19 vaccines capped price losses.
Stay tuned to Baaghi TV for further updates!
