Oil prices fall; expectation for production grows

The economic effects of the recent increase in cases of covid-19 in the world impacted the oil market on Monday (03). Experts fear that the industry will suffer from an oversupply, a the Organization of Petroleum Exporting Countries (OPEC) and its allies production cuts at the beginning of the month.

So oil prices fell on the morning of this Second. Around 08:07 CET, Brent oil retreated $0.25, or 0.57%, at $43.27 per barrel. On the other hand, the oil of the United States was down $0.32, or 0.79%, at $39.95 per barrel. It is worth remembering that in the last month, Brent was trading between $41 and nearly $45.

This scenario shows an anxiety on the part of speculators demand for oil to stabilize. In turn, OPEC+ members who have been cutting production by 9.7 million barrels per day (bpd) since May, began to reduce by only 7.7 million bpd by December earlier this month. In more, coronavirus cases have grown again in the United States and other countries, which have begun to impose new isolation restrictions. Those who were still measures, extended all of them to control the pandemic.


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