Oil prices fell more than 5%

Uncertainty over oil demand caused by the second wave of the pandemic Сovid-19 and the strengthening of quarantine measures, has led to a significant decline in oil prices.

Yesterday, November futures for Brent oil at the London ICE Futures exchange fell 4.8% to 40.5 $/barrel, while futures for oil of mark WTI in electronic trading on the stock exchanges of new York (NYMEX) decreased by 5% to 38.8 $/barrel.

Distribution coronavirus slows the global economic recovery and increases anxiety about the dynamics of demand for oil.

In India, which is the third-largest importer of oil, the number of infected people has increased to 6.23 million. The country was the first in the world in the number of infected per day, which exceeds 70,000 people and is fast catching up the US, where the number of infected exceeds of 7.22 million people.

as a Result of restrictions that are supported by most countries, demand for oil remains weak, and in August once again decreased. Oil refining in comparison with July decreased by 8.7%, and the load of NSP decreased from 83,3% to 76.1%.

the oil market is pressing the resumption of production at Libya's largest oilfield with a capacity of 200 thousand barrels/day after months of the blockade, as well as the data of the Central dispatching Department of fuel energy complex, according to which Russia during 1-28 September increased compared with August, production of crude oil and condensate 0.6% from 9.87 to 9.93 million barrels/day.

Traders expect today's report by the American petroleum Institute and US Department of energy on stocks of raw materials in the tap, which is polled by Reuters, experts expect an increase of oil reserves and the decline in gasoline inventories and ethanol production. This will affect the price of corn, which, thanks to active export demand remained at a high level.

Reduction in demand for oil will reduce the demand for energy commodities such as corn, canola or palm oil, quotes where the last week has fallen by 12%.