Oil Suffers 3% Loss on Rising Covid Infections, Libya Worries

by Ship & Bunker News Team
Monday October 26, 2020

Oil prices on Monday continued their downward plunge, this time by over 3 percent, as government mandated Covid restrictions in Europe, rising infections in the U.S., plus continued concerns about Libya resuming output concerned traders.

Bjornar Tonhaugen, head of oil markets at Rystad Energy, remarked, "It's a dark Monday in the oil market; we have long warned that a 'second wave' of strict coronavirus restriction measures could be re-imposed, and it's now happening for real."

Brent dropped $1.31, or 3.1 percent, to settle at $40.46 per barrel, and West Texas Intermediate fell $1.29, or 3.2 percent, to settle at $38.56 per barrel; both benchmarks fell almost 2.5 percent last week.

bMohammad Barkindo, secretary general for the Organization of the Petroleum Exporting Countries (OPEC), maintained a sober outlook on Monday by stating, "We remain cautiously optimistic that the [demand] recovery will continue; it may take longer, maybe at lower levels, but we are determined to stay the course."

He added that producers did not expect a renewed oil-price collapse as in the second quarter when oil hit historic lows: "We are determined to assist the market to restore stability by ensuring that the stock drawdowns continue."

Ship & Bunker News Team
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