Crude prices rose slightly this Monday, but remained pressured due to the increase in Covid-19 cases in Europe and a possible release of oil reserves in Japan, raising concerns about oversupply and weak demand.
Crude prices Brent and from West Texas Intermediate (WTI) lost more than $ 1 in early trading for the week, falling to its lowest level since Oct. 1.
Brent was up 2 cents, or 0.03%, at $ 79.91 a barrel, while WTI was up 4 cents, or 0.05%, at $ 75.97 a barrel.
The prospect of national lockdowns in Europe has raised concerns about economic growth and oil demand, said Tamas Varga, an analyst at London-based brokerage PVM Oil Associates.
Investors sought refuge in the safety of assets like the dollar early in the session, which contributed to the sharp drop in crude prices, Varga added.
The dollar was trading near a 16-month high against the euro on Monday, making the price of crude in the greenback more expensive for buyers of other currencies.
Also, the possible release of crude from strategic oil reserves (SPR) kept pressure on the price of crude, leaving Brent below the psychologically important mark of $ 80.
The Japanese Prime Minister, Fumio Kishida, said on Saturday that it is ready to help with efforts to combat the rise in oil prices following a request by the United States to release crude from its reserves.
Reference-www.eleconomista.com.mx