New York’s West Texas Intermediate (WTI) crude futures ended lower on Friday (Nov 19) as investors feared the number of coronavirus cases. The increase in Europe will slow the economic recovery and affect oil demand. The US and China may be draining oil from strategic reserves to keep oil prices down.
The WTI crude oil contract was delivered in December. It fell $2.91, or 3.7%, at $76.10 a barrel. And this week, it’s down 5.8%.
Brent crude oil contract (BRENT) for delivery in Jan. It fell $2.35, or 2.9 percent, at $78.89 a barrel. And this week, it’s down 4%.
Oil markets have been under pressure as many European countries have taken strict containment measures to contain the spread of COVID-19. and speeding up vaccination programs amid rising numbers of infections
In addition, the forecast that US and China will drain oil from strategic reserves and concerns about oversupply As a result, the price of oil has decreased as well.
Both the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) are expected to The oil market will face oversupply next year.