Oil prices drop on renewed coronavirus worries
On Monday, oil prices decreased massively due to renewed worried related to the worldwide fuel demand amid strict coronavirus lockdowns in Europe as well as new restrictions on movement in China, which is the second-largest oil user of the world, where COVID-19 infections climbed up.
The head of global market strategist of Axi, Stephen Innes said that, Covid hot spots gaining again in Asia, along with 11 million people in shutdowns in Hebei region of China, with a hit of uncertainty of Fe policy, which has triggered some profitability taking out of the gates. The mainland of China observed its largest daily gain in coronavirus infections in more than 5 months, said by authorities.
With new infections increased in Hebei, which also surrounds the capital of China. The provincial capital and epicentre of new COVID-19 outbreak, Shijiazhuang which is in lockdown, with residents and vehicles banned from leaving, because authorities desire to curb in the spread of virus. Most of the European continent is now under the tougher limitations, as reported by the Oxford stringency index, which captures measures including travel bans, school as well as workplace closures.
The senior market analysts said that Brent is not performing well after Crown Prince Mohammed bin Salman claimed the future of Saudi Arabia beyond oil and meanwhile, Iraq gained their pricing for crude sales to Asia in February. The crown prince of Saudi Arabia revealed its recent plans to implement a zero-carbon city at NEOM, the first key construction project for the $500 billion flagship business region that targeted at diversifying the economy of the globe’s biggest oil exporter.
But still, oil prices declined were restricted by plans for the United States president-elect Joe Biden to declare trillion of dollars in new coronavirus relief package this week, most of which to be estimated through rose borrowing. Crude oil prices were assisted by Saudi Arabia’s expectations previous week for a voluntary oil output cut of one million barrels per day in February and March as part of an agreement for most OPEC+ producers in order to hold production steady during new shutdowns.