July 29, 2021

Crude oil prices fall almost 20% due to fears about demand

Oil prices plummeted almost 20% on Sunday, fearing that a dispute in OPEC will result in an excess supply to the world economy, which has been weakened by the coronavirus.

Brent crude lost $ 8.77, 19.3%, standing at $ 36.50 a barrel at 7:23 p.m. Eastern time, after hours earlier reached its lowest price since 2016 US reference crude fell $ 8.11, to 33.17 per barrel.

The drastic losses occurred after US oil fell 10.1% on Friday, its biggest drop in more than five years. Prices are falling while Saudi Arabia, Russia and other oil countries discuss how much to reduce production to shore up prices.

Demand is decreasing because people are stopping traveling. The fear is that the outbreak of the new coronavirus will decelerate the economies significantly, which would mean even less demand. AP


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