A sharp drop in oil prices

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A sharp drop in oil prices

Reuters

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Oil prices plunged today, as they were hit by concerns that new restrictions imposed to combat the Corona pandemic and the slow distribution of vaccines in Europe will slow the recovery in demand for crude.

Brent crude futures fell by 3.84% to $ 62.14 a barrel, by 13:30 Moscow time, while US West Texas Intermediate crude futures fell 3.69% to $ 59.29 a barrel.

Commerzbank said, “The European continent tightens measures of the Corona virus, and thus strengthens restrictions on movement.”

And the extension of closures is driven by the risk of a third wave of infections, in light of the spread of new strains of the virus on the continent.

Germany, the largest consumer of oil in Europe, is extending general isolation measures until April 18, and asking citizens to stay at home in an effort to stop the third wave of the Covid-19 pandemic.

The rise in the US dollar also negatively affected prices. In light of the pricing of oil in dollars, the rise in the US currency increases the cost of oil for holders of other currencies.

Source: Reuters



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