30.09.202012:09 Forex Analysis & Reviews: Cost of oil has been reduced due to multi-directional pressure

Yesterday, the price of December futures for North Sea Brent crude oil mixture traded at $40.94 per barrel, but it reached $41.22 per barrel today. In turn, the November futures price was at $40.51 which is now at $40.57. At the same time, the price of November futures for WTI also declined, which traded at $38.52 per barrel; it is currently at $39.04 per barrel today.

On the other hand, there are fears surrounding the demand for commodities amid the risk of a second wave of COVID-19, which could lead to reintroducing quarantine restrictions. All the measures taken to contain the virus caused extreme damage to the countries of Europe, Asia and America. If this practice will be repeated, then the further development of the economic recovery will be unlikely.

In addition, the Libyan oil company, Arabian Gulf Oil, has re-started oil production from one of its largest fields. The resumption of the oil industry and exports is an extremely important event for Libya, since the country's budget has lost more than $ 10 billion due to the blockade. However, an increase in supply in an atmosphere of unstable demand for oil directly affects its price.

The results of the previous week from the American Petroleum Institute (API) and the US Department of Energy regarding the reserves of raw materials in the country are also important. Analysts expect an increase in oil reserves, and a decrease in gasoline and distillate inventories. The official data from the US Department of Energy will be released tonight.

At the same time, the quotes are under pressure from the Central Dispatching Office of the Fuel and Energy Complex (CDU TEK), which released information that oil and condensate production rose by 0.6%. This indicator showed an increase in the first 28 days of September. Now, oil and condensate production is 9.93 million barrels per day (the same figure was at around 9.87 in August).