On Monday, oil prices nosedived to the lowest level since May by more than 4% on worries over Europe’s coronavirus lockdowns and US presidential election week.
By 00.18 GMT, Brent crude oil futures for January slumped by 4.3% or USD1.62 to hit USD36.32/barrel while the US WTI plunged by 4.5% or USD1.62 to USD34.17/barrel. Earlier, Brent fell to the low of USD35.47/barrel while WTI at USD33.64/barrel.
Several European countries have reimposed lockdowns to mitigate the infection rates of coronavirus. The UK and Italy are two noticeable economies that weighed on the deteriorating situation in the region.
Further raising the worried tone in the global oil market is the increasing supplies that have driven October prices to the second consecutive monthly fall. Libya and Iraq’s rises in oil output have offset the oil production cut of the other Organization of the Petroleum Exporting Countries (OPEC) members.
At the moment, OPEC and its non-member oil producer allies (OPEC+) is cutting output by around 7.7 million bpd to support prices. The alliance will hold a policy meeting from November 3 to December 1.
