Covid's second wave hits oil market

The oil market was gradually recovering from the crisis caused by the coronavirus pandemic, but signs of a second wave of problems are beginning to emerge. Imports from China have slowed, major Producers in the Middle East have cut barrel prices. In the United States, inventories remain high, and on Tuesday (08), Brent oil reached its lowest value since June.

In August, after reducing production for months, the Organization of the Petroleum Exporting Countries (OPEC) began to slow the cuts, but the expected recovery in consumption did not happen.

The international scenario is worrying. Cases of Covid-19 infection have increased Europe. India has become an epicenter of coronavirus and may record the first annual fall in oil consumption in forty years. In the U.S., airlines, which often have high demand for oil, continue with the layoff of thousands of employees, and the slight increase in demand caused by the summer in the northern hemisphere has ceased.

"It will take three years for global oil demand to recover from Covid to its new normal, assuming we have a vaccine or cure," Bank of America analysts predicted in a report published this week.


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