23.10.202012:56 Forex Analysis & Reviews: Oil price continues to decline as it fears second wave of COVID-19

It was shown in the trading data that oil's price this morning adhered to the dynamics yesterday and continues to decline on growing concerns about the recovery of demand in connection with the second wave of COVID-19.

Thus, the price of December futures for Brent crude oil declined by 0.12% and reached $42.41 per barrel, while December futures for WTI oil declined by 0.12% and stopped at $40.59 per barrel.

It was expected that investors' negativity is associated with the second wave of pandemic globally. The quarantine restrictions around the world clearly provoke a sharp decline in the demand of oil. And unfortunately, the media around the world only report alarming news: France recently recorded a daily growth in their COVID-19 cases, which was then followed by a few US states.

Although the main reason is the coronavirus, it is not the only one. The negative dynamics in the black gold market have been certainly outlined for a long time. For example, the US Department of Energy explained the growing decline of gasoline reserves in the country in their statement, which decline by 1.9 million barrels last week with a forecasted decline of 1.6 million barrels. According to the Ministry of Energy, the demand for gasoline in the United States declined by 290 thousand barrels per day during the past week.

Perhaps, the data on such an impressive decline in gasoline consumption for oil prices was more shocking than concerns about the negative impact of the second wave of COVID-19 on consumer behavior. But that's not all.

The market is particularly concerned about the news which includes the recovery of oil production in Libya. Recently, Former Prime Minister of Libya, Ahmed Maiteeq, said that the extraction of black gold in the country has already reached 500 thousand barrels per day, and Libya plans to produce 1 million barrels of oil per day by the end of 2020.

In addition, the general negative mood of investors is strengthened by the vague hope of agreeing on a stimulus package for the US economy, without which the US economy will not recover in the wave of COVID-19.