pixnio
If the negative trend continues, the participants in the OPEC + deal may begin verbal interventions to support prices, analysts say.
After a two-month break, the price of Brent crude fell below $ 40 per barrel. According to Reuters, the price of the November contract for the supply of North Sea oil fell to $ 39.31 per barrel, the lowest value since June 16. This is almost 6.4% below the Monday close values. On the spot market, Brent also fell by more than 6% to $ 37.4 per barrel - the lowest level since June 4.
The general drop in risk appetite among investors contributed to the return to local minimums. Over the past four days, leading US indices have plunged by 5-8%.
Less harsh, but also negative, was the reaction on other sites. The sharp correction of the overheated tech sector in the US stock market pulled other assets with it.
Investors were also worried about Saudi Arabia's decision to cut its October selling prices. In particular, Aramco cut the price of Arab Light for the Asian region by $ 1.4 per barrel. Prices for US customers were also cut by $ 0.6 per barrel compared to September. The adjustments also affected customers in northwest Europe and the Mediterranean region.
At the same time, only four out of ten Asian refineries surveyed by Bloomberg are ready to take advantage of the decline in oil prices from Aramco.
However, China provides some support to the oil market. On Monday, the country's main customs department announced that oil exports in August amounted to 47.48 million tons or 11.18 million barrels per day. Although this is less than the June record (12.94 million barrels per day), it is still above the 2019 average of 10.11 million barrels per day.
source: bloomberg.com
After a two-month break, the price of Brent crude fell below $ 40 per barrel. According to Reuters, the price of the November contract for the supply of North Sea oil fell to $ 39.31 per barrel, the lowest value since June 16. This is almost 6.4% below the Monday close values. On the spot market, Brent also fell by more than 6% to $ 37.4 per barrel - the lowest level since June 4.
The general drop in risk appetite among investors contributed to the return to local minimums. Over the past four days, leading US indices have plunged by 5-8%.
Less harsh, but also negative, was the reaction on other sites. The sharp correction of the overheated tech sector in the US stock market pulled other assets with it.
Investors were also worried about Saudi Arabia's decision to cut its October selling prices. In particular, Aramco cut the price of Arab Light for the Asian region by $ 1.4 per barrel. Prices for US customers were also cut by $ 0.6 per barrel compared to September. The adjustments also affected customers in northwest Europe and the Mediterranean region.
At the same time, only four out of ten Asian refineries surveyed by Bloomberg are ready to take advantage of the decline in oil prices from Aramco.
However, China provides some support to the oil market. On Monday, the country's main customs department announced that oil exports in August amounted to 47.48 million tons or 11.18 million barrels per day. Although this is less than the June record (12.94 million barrels per day), it is still above the 2019 average of 10.11 million barrels per day.
source: bloomberg.com
