The second wave of the pandemic lowers the stock indexes and crude oil prices

2020-10-27 12:51:50
Machine translation
The second wave of the pandemic lowers the stock indexes and crude oil prices

Week on the US exchanges began with the fall of oil prices and stock indices on the background of the increasing number of infected Covid-19 and uncertainty before the presidential election.

 

On the new York stock exchange the Dow Jones Industrial Average (DJIA) fell by 2.29% to 27685,38 points, the index of technology companies NASDAQ 1.64% to 11358,94 p., the index of wide market S&P 500 by 1.86% to 3400,97 p.

 

the increase in the number of infected coronavirus and unclear fate of the package of support for the U.S. economy forced the participants to abandon the purchase of such risky assets as stocks. The source who reported a new record: the number of cases per day in the world exceeded 465 thousand people, in particular in the United States on Friday was recorded by 83.7 thousand new cases on Saturday - more than 83 thousand

 

oil Prices yesterday fell 3% amid a rapid recovery of production in Libya and lower demand as a result of the pandemic.

 

December f' of usersi for Brent crude on London's ICE Futures exchange fell yesterday by 2.7% to of 40.69 $/barrel, WTI oil on the new York NYMEX, 2.9% to 38.7 $/barrel.

 

the State oil company of Libya National Oil Corp (NOC) today announced the lifting of force majeure on the field, the El Feel (Elephant), noting that in a period of 4 weeks production there will resume from the current 560 thousand barrels/day to 1 million barrels/day. It was last a force majeure, which operated in oil fields and ports.

 

the Global oil market supports the demand from China, which for the sake of increasing internal reserves for 9 months increased its imports by 13%. In particular, oil imports from Russia grew by 16% to 64,62 million tonnes, Saudi Arabia by 6.5% to 63,57 million tons, Brazil - 15.6% to 33,69 million t Saudi Arabia continues to lower prices and increase the volumes of supply, and in September became the largest supplier of oil to China, surpassing the gap with the Russia. Imports from the United States, which is the fourth largest supplier of oil to China rose to a record 3.9 million tons.

 

Likely reduction of demand for oil as a result of the pandemic on the background of the recovery of production in Libya in the near future will increase pressure on the oil quotes.

 

the Fall in oil prices will continue to lower prices for oilseeds and corn, which have recently increased sharply, with the support of weather factors. But the better weather will soon return the markets to the real balances of supply and demand.

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