Oil prices fell on Monday after the highest jump since June last week. At the same time, the market continues to monitor the situation with the incidence of COVID-19 in the world. Investors are again worried about the pace of economic recovery, which may take five years.
According to Investing data, until September 21 the price of November futures on Brent on the London Stock Exchange ICE Futures amounted to 42.63 dollars per barrel, which is 0.52 dollars (1.21%) lower than the closing price of the previous session.
October futures on the WTI have so far fallen in electronic trading on the New York Mercantile Exchange (NYMEX) by $ 0.52 (1.26%), to $ 40.80 per barrel.
Over the past week, Brent rose by 8.3%, WTI - by 10.1%.
As Bloomberg analysts reminded, following the meeting of the OPEC + Ministerial Monitoring Committee, it was announced that the terms of compensation for unreduced OPEC + production will be extended until the end of 2020. Saudi Energy Minister Prince Abdulaziz bin Salman expressed confidence that in September-December, 2.4 million BPD of OPEC + will not be reimbursed. This led to a significant rise in oil prices last week.
"If additional cuts are made, the supply surplus in the oil market, which many feared would not be, and stocks will be significantly reduced," - said Commerzbank analyst Eugene Weinberg.
Experts have reportedly feared that the pace of recovery in oil demand will be slower than expected - due to the need to continue quarantine measures or cancel the previous easing.