On Monday, crude oil prices slipped on the fears of increasing supply and weaker demand based on the higher energy costs and rising coronavirus cases.
At 07.31 GMT, Brent crude futures dropped by 0.8% or 63 cents to USD81.54/barrel while the US WTI lost 0.7% or 55 cents to USD80.24/barrel.
The decrease has been happening for the past three weeks as the US Dollar is strengthening and the possibility of US President Joe Biden’s administration might release oil from the U.S. Strategic Petroleum Reserve to lower the prices.
Other than that, the US energy companies have been adding oil and natural gas rigs in these past three weeks. According to energy services company Baker Hughes Co., in the week ended November 12, the oil and gas rig count jumped by 6 to 556, the highest number since April 2020.
Looking forward, last week, the Organization of the Petroleum Exporting Countries (OPEC) adjusted down its forecast for world oil demand in the fourth quarter by 330,000 bpd month-on-month on account of high energy prices which have been hampering the global economic recovery.
China and Europe have been predicted to be the epicenter of other coronavirus waves.
Meanwhile, Russia’s oil giant Rosneft warned about a potential supercycle in the global energy markets. The prediction raised the prospect of higher prices.
