Oil prices fell on Monday on a weak demand outlook as Europe tightened coronavirus lockdowns and turbulence of the approaching U.S. elections, according to Reuters. Higher Libyan oil output, which currently stands at about 800,000 barrels per day (bpd), up more than 100,000 a few days ago, also added oil price pressures.
- Near-term oil fundamentals will continue deteriorating until the rise in COVID-19 infections is controlled-Stephen Brennock, PVM oil broker.
- Global oil trading firm Vitol anticipates low winder oil demands of 96 million bpd while Trafigura expects the demand to fall to 92 million bpd or below.
- Oil recovered some losses after Japan’s export orders grew for the first time in two years and China’s factory activity rose to a near-decade high in October.
- OPEC and allies, including Russia, are expected to cut output by 7.7 million bpd in January to support prices.
Oil futures are declining. CL! is down 2.57%