empty
29.01.2021 11:39 AM
The chasm is getting deeper: oil is continually at negative trend

This image is no longer relevant

The price of crude oil continues to win back the negative news this morning and go down. It is worth noting that the Brent brand still tried to cope up with the problems and traded for a short time in the green zone, but then, it went to negative territory. The WTI brand could not overcome the negative pressure at all.

The main attention of the market participants as of this moment is directed towards the increasingly complicated situation of coronavirus infection. The epidemiological situation is not improving at all, the growth of infections is only becoming faster. Mainly, this has a strong impact on the level of demand for crude oil, which may soon become even lower because it is still quite limited. At least, all the news about COVID-19 is immediately perceived by investors with hostility. Among the latest negative news was that a new strain of coronavirus was detected in the United States of America, which up to this point was discovered in South Africa. Given the fact that the US authorities already understand that mass vaccination in the country is going with a big delay and problems, the coronavirus mutation can again lead to a state of emergency,

It is already clear how seriously restrictive quarantine measures affect the tourism sector in the United States and around the world. The total number of tourist trips was greatly reduced, which has led to a decrease in fuel consumption. Thus, the demand for fuel has already faced great difficulties, which will only increase in the near future. Given that the authorities of the states do not welcome the active movement of citizens, the situation can escalate to its limit.

The price of futures contracts for Brent Crude Oil for March delivery on the trading floor in London rose slightly by 0.29% or $ 0.16 this morning, which allowed them to move to a new level of $ 55.37 per barrel. However, all the positivity is gradually fading away. We may recall that yesterday's trading ended with a reduction in the value of contracts by 0.5% or $ 0.28, and the final price was $ 55.53 per barrel. It is also worth noting that the validity of contracts for March will end today.

The price of futures contracts for WTI crude oil for delivery in March on the electronic trading platform in New York falls by 0.63% or 0.33 dollars today, which moves it to the level of $ 52.01 dollars per barrel. Thursday's trading session ended in the red zone: the decline was 1% or $ 0.51, and the price was around $ 52.34 per barrel.

Among other things, there's another important topic for the oil market that is related to the policy of the European Union. We are talking about the scandal over the coronavirus vaccine for the UK. In particular, the EU leadership will decide whether to restrict the export of Pfizer's drug, produced by a Belgian company under license to the UK. The main argument of the authorities is based on the fact that European countries are now experiencing a serious shortage of vaccines and the threat of the spread of new strains is only growing. Of course, the pressure from this on the oil market will definitely increase, and the mood of investors begins to deteriorate significantly. All this, of course, can collapse the black gold market even more in the short term, which is what most analysts suggest to prepare for.

Maria Shablon,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

US Market News Digest for April 25

US stock indices closed higher for the third straight session, buoyed by a sharp rally in the technology sector. The Nasdaq surged 2.74%, driven by strong earnings reports from companies

Ekaterina Kiseleva 11:42 2025-04-25 UTC+2

Wall Street on the rise: Nasdaq soars 2.74%, tech leads market higher

Procter & Gamble, PepsiCo fall after forecast cuts Hasbro, ServiceNow jump after results March durable goods jump more than expected Alphabet beats revenue estimates, shares rise after hours Asian markets

Thomas Frank 07:15 2025-04-25 UTC+2

Earnings parade: From Adidas sneakers to Boeing jets, quarterly reports push the market

Indices up: Dow 1.07%, S&P 500 1.67%, Nasdaq 2.50% Bessent calls US-China tariffs unsustainable, Trump open to talks Tesla, Boeing rise after quarterly results European stocks fall as investors weigh

Thomas Frank 13:15 2025-04-24 UTC+2

US Market News Digest for April 24

US stock indices, including the S&P 500 and Nasdaq 100, posted solid gains on optimism about progress in trade negotiations. Despite the lack of a clear position from the White

Ekaterina Kiseleva 11:05 2025-04-24 UTC+2

Trump acts, markets react: Nikkei up 2%, USD rallies

The Nikkei surged more than 2%, S&P 500 futures extended their rally, and the dollar jumped after US President Donald Trump said he has no plans to fire Fed Chairman

12:35 2025-04-23 UTC+2

US Market News Digest for April 23

The US market is showing renewed signs of instability. Positive signals about a potential de-escalation in the trade conflict with China are fueling hope, but experts warn against excessive optimism

Ekaterina Kiseleva 12:17 2025-04-23 UTC+2

Trump says markets react: Nikkei up 2%, dollar strengthens, China awaits outcome

Nikkei jumps more than 2%, S&P 500 futures continue rally Dollar jumps as Trump says he has no plans to fire Powell Hopes for China tariff easing, but no deal

Thomas Frank 10:52 2025-04-23 UTC+2

US Market News Digest for April 22

The S&P 500 and Nasdaq 100 continue to slide as mounting concerns over slowing economic growth and the impact of trade tariffs weigh on sentiment. The market remains volatile, with

Ekaterina Kiseleva 11:13 2025-04-22 UTC+2

Trump, Fed, and gold at $3,000? Markets respond to alarming signals

Investors are worried about the Fed's independence under Trump. US assets are falling, and the dollar is at a three-year low against the euro. Safe-haven currencies like

11:46 2025-04-21 UTC+2

US Market News Digest for April 21

The S&P 500 and Nasdaq slipped once again after Donald Trump lashed out at the Federal Reserve. His comments called the independence of the central bank into question, amplifying inflation

Ekaterina Kiseleva 11:41 2025-04-21 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.