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In trading on Thursday (29), crude oil futures prices closed at their lowest point in about 5 months, due to the increase in new crown boxes, prompting the European government to impose stricter restrictions to activities, and the market is more concerned about the prospects for global and US economic recovery.
- The price of WTI crude oil futures for December delivery fell $ 1.22 or 3.3% to close at $ 36.17 per barrel, the lowest closing price of the most recent monthly contract since June 1. .
So far this month, WTI crude oil futures prices have fallen approximately 10%.
- The price of Brent crude futures for December delivery fell 1.47 dollars, or almost 3.8%, to close at 37.65 dollars a barrel, the lowest closing price since May 29.
Warren Patterson, Head of Commodity Strategy at ING, stated: “Obviously, the latest wave of COVID-19 will put pressure on oil demand to some extent, and since the price of ICE Brent crude is now falling below the $ 40 a barrel, OPEC + is likely to act at the meeting in late November. “
At present, this means that OPEC + can implement the current scale of production reduction until 2021 and abandon the original plan to start reducing the scale of production in January. This move is expected to offset the impact of the increase in Libya’s crude oil supply.
However, the US presidential election remains the most important key. The Democratic Party may win the elections, which opens the door to return to the Iran nuclear deal and lift Iran’s sanctions, which can bring 1.5 to 2 million barrels of crude to the market daily. the amount.
In response to the rising trend in the number of confirmed cases of the new krone, Germany and France imposed stricter restrictions on activities, prompting a sharp drop in crude oil on Thursday. The Wall Street Journal reported that the United States announced on Wednesday that there were 79,000 newly diagnosed cases, which is the second day in a row that the number of newly diagnosed cases exceeded 70,000 in a single day, as some states announced an increase in rates. of infection.
Oil traders ignored the production disruption caused by Hurricane Zeta. Hurricane Zeta made landfall in Louisiana on Wednesday as a category 2 storm. According to data from the Office of Environmental Safety and Compliance (BSEE), as of Thursday, oil production in the Mexican region has closed around 84.8% of production of oil from the Gulf of Mexico and 57.6% of natural gas production.
Data released Thursday showed that the third quarter of the US GDP growth rate hit a record 33.1%, but did not provide support for crude oil prices.
Jason Schenker, President of Prestige Economics, said: “We expect the future growth rate to slow down significantly, that is, in the fourth quarter of this year and beyond. In addition, we expect that real US GDP will not come back. at the level of the fourth quarter of 2019 to 2022 “.
Other energy raw materials
- The price of natural gas futures for December delivery rose 0.3% to close at $ 3,301 per million Btu.
The EIA announced Thursday that the US natural gas supply increased by 29 billion cubic feet last week (as of 10/23). According to S&P Global Platts, analysts on average expect natural gas supply to increase by 37 billion cubic feet during the week.
- The price of gasoline futures for November delivery fell 2.8% to settle at $ 1.0515 per gallon.
- The price of hot fuel oil futures for November delivery fell 2.3% to $ 1.0884 per gallon.
The aforementioned November futures contract will expire at the close of this Friday.
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