OIL gets cheaper with increasing Covid-19 infections

Oil fell on the first day of the trading session with the rising number of cases in Asia, threatening the recovery of demand. The rapid jump in cases in the United States, as well as the lack of aid and the delay in recovery, are raising new discussions and doubts about the demand for raw materials. More regions and countries are restoring travel and mobility restrictions and the outlook for oil remains bleak. At the moment, WTI is trading around $ 40.58 and Brent around $ 42.86 per barrel.

Concerns about oversupply also continue, especially after the Libyan oil is returning to the market. Tanker tracking data shows that Iran is increasing its exports by 1.5 million barrels a day. In the corridor of the South Caucasus gas pipeline, clashes between Armenia and Azerbaijan create uncertainty over gas and oil supplies passing through the region.

Exxon avoids layoff talks, but it is clear that they will be necessary, citing the company’s downturn, days after its exclusion from Dow Jones.
Meanwhile, BP, Shell and Equinor – three of the world’s largest energy companies have cut dividends.

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 Junior Trader Kameliya Ivanova

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