Oil prices are plummeting, and yesterday lost another 7-8%

After the long weekend stock indices and oil prices on the U.S. stock exchanges continued Friday's falling. If the stocks value of the shares after the fall on Friday of 6.8-11% yesterday has decreased on 2,25-4,1%, while oil prices have fallen by 6-8%.

November futures on Brent oil fell by 6.8% to its lowest since June 25, the level of 39.6 $/barrel, and WTI – by 7.8% to 36.5 $/barrel.

shares of the company Tesla, the capitalization of which in January amounted to $ 100 billion, and for the last two months has doubled to $ 400 billion, yesterday I lost 11%. This once again confirms that stocks are growing much faster than recovering the real economy of the United States.

during the last five sessions crude oil has depreciated by 12-15% and experts predict that in the current environment, prices can return to below 35 $/bbl.

the Main reason for the decline was the increase of oil reserves in China and USA, as well as a slower recovery in consumption under the pressure gain of the pandemic, while the country gradually soften OPEC production quotas and Saudi Arabia reduced oil prices for October for buyers from U.S., Asia, and North-Western Europe.

China in recent months has accumulated significant reserves of oil, so in August decreased in comparison with July its imports by 7.4%, and in September and October will continue to reduce.

the Demand for gasoline in the United States has stopped growing and remains at 8-10% lower than last year.

According published on Wednesday the report of EIA, in the U.S. as of August 28, compared to the average 5-year performance:

the

gasoline stocks by 3.3%,

distillate stocks 23.4%.

• crude oil inventories were up 13%,

In the updated EIA report, it will publish today, the figures may be even worse.

In India, which in recent years is one of the main drivers of growth in oil consumption, there is a growing pandemic in the near future will have a negative impact on demand.

Due to demand reduction the reduction in oil prices will increase pressure on the prices of corn and palm oil are the main raw materials for biofuel production.