Oil prices slip as new COVID-19 weaken fuels demand

Published:

On: Dec 2020

On Monday, oil prices declined around three percent because a fast-spreading new COVID-19 tighten that has close most parts of the United Kingdom raised concerns over a lesser recovery in fuel demand amid strict limitations in Europe. The recent declines came after oil prices represented 7 straight weeks of increments previous week because investors concentrated on the rollout of coronavirus vaccinations.

The chief analyst of Sunward Trading, Chiyoki Chen said that a tougher shutdown in Britain to combat a new wave of COVID-19 as well as travel limitations in other European nations led funds to unroll their positions. He also added worries over dragging Brexit discussions also marked industry sentiment.

Chen said that Brent oil prices may drop below $50 a barrel and WTI may fall less than $45 this week because investors decline to adopt positions ahead of Christmas festival holidays. The prime minister of Britain Boris Johnson will lead an emergency response meeting on today to talk about international travel and the surging coronavirus cases in the country.

The analysts said that there are 70 percent additional transmissible than the real one which has also promoted worries related to a broader spread, that enforcing numerous European nations to start halting their doors to passengers from the United Kingdom.

With massive progress in vaccination rollouts, several managers have gained their overall long United States crude futures and meanwhile, options positions in the week to 15th of December, as reported by the US Commodity Futures Trading Commission (CFTC).

The oil industry has been on a lower pace in the last month and therefore ignoring negative components amid a confidence that a raising vaccine rollout would energize worldwide growth, but the expectations of the investors for the next year have vanished because of a new phase of the virus.