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On Monday, oil prices hit their lowest level in five months after further closures caused by the Corona virus.
A number of economies have tightened social restrictions, including Britain, France and Germany, which at the same time are battling rising infection rates.
There are concerns that the new foreclosure measures will further affect economic growth and that demand for oil will decline.
The commodity and equity markets are also in a state of tension, heading into this week’s US presidential election.
The price of Brent, during trading hours in Asian markets, fell to its lowest level, hitting $ 35.74 per barrel, a level not seen since late May.
Brent, the main benchmark for oil prices, is down 45% from the start of the year.
The downturn caused by the virus has weighed on energy companies, with BP and Shell announcing thousands of job cuts this year.
BP plans to cut 10,000 jobs after falling demand, while Royal Dutch Shell forecast between seven and 9,000 jobs.
Electoral fears
The price of US crude oil was also hit hard, as it fell 7% on Monday, bringing the price per barrel to $ 33.64.
Fears of a hotly contested presidential election this week and the lack of sustained fiscal stimulus in the United States have led to a grim economic outlook.
Published image, Getty Images
“Whichever way you see it, next week will be a major event for the US and global markets,” said Simon Ballard, chief economist at First Abu Dhabi Bank.
“We see the possibility of a sharp rise in volatility around these events, all against the backdrop of worsening COVID-19 conditions in most of the United States, Europe and elsewhere,” he said. -he adds.
China remains the most optimistic market for economic growth this year.
The world’s largest importer of crude oil said Monday it would increase its stake for 2021 by 20% for companies that are not state-owned.
This follows the acceleration of activity in China’s fastest-growing industrial sector in nearly a decade in October, with increased domestic demand.
This is what was reported by the media on the Manufacturing PMI, a special survey that focuses on small and medium businesses.
Last month, China continued its exit from the epidemic with strong economic growth in the third quarter, official figures show.
And China, the world’s second largest economy, grew 4.9% between July and September, compared to the same period last year.
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