Oil prices slip 3% as Europe widens lockdowns

Oil prices slip 3% as Europe widens lockdowns

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Singapore: Oil prices fell by more than 3% on Monday due to concerns that the coronavirus lockdown across Europe will weaken fuel demand, and traders suffered turmoil during the US presidential election week.

The MSCI Asia-Pacific region is the most extensive stock index outside of Japan. MIAPJ0000PUS rose 0.5% to 573.04. This is because China’s Caixin/Markit Manufacturing Purchasing Managers Index provides hope that the region’s successful containment of the coronavirus can avoid the economic pain in Europe and the United States.

With the exception of New Zealand, all major indexes rose on Monday.

The Australian stock market .AXJO rose 0.4%.

Blue chip stocks CSI300.CSI300 rose 0.8%, China’s huge industrial sector steadily recovered to the level before the COVID-19 pandemic paralyzed the overall economic situation, and the Chinese stock market rose.

Japan’s Nikkei .N225 rose 1.5%.

S&P 500 ESc1 E-Mini futures rose 0.1%, and investors turned to the US presidential election on Tuesday.

As many Western countries are still struggling with the still-rising COVID-19 infection and are back in a virus lockdown, the global outlook is bleak.

Last week, the global number of coronavirus cases exceeded 500,000, and Europe passed the bleak milestone of 10 million infections. The UK handles more than 20,000 new cases every day, and the record surge in US cases kills as many as 1,000 people every day.

The new lockdown caused by the coronavirus has caused concerns about the outlook for fuel consumption, causing Brent crude oil LCOC1 to fall to a low of $35.74 per barrel, the lowest level since late May. US crude oil prices are as low as 33.64 US dollars.

Last week, some of the largest Wall Street companies, including Apple APL.O and Facebook FB.O, had poor prospects, further deterioration in performance and worsening sentiment, which dragged down the U.S. stock market last week.

Perpetual analysts wrote in a report: “The market is looking forward to the fourth quarter and early 2021. Given that Europe will adopt stricter lockdown measures, the growth outlook appears to be clouded.”

They said that if European economic growth is hit by -1%, then in the following 12 months, global GDP will fall by 0.5%.

“The key question here is how long it takes to control the virus.”

Prior to the last campaign weekend, Republican President Donald Trump fell behind Democratic challenger Joe Biden in the national polls, partly because Trump’s handling of the coronavirus was widely opposed.

Opinion polls conducted in the most competitive states that will determine the election show that competition between races is more intense, and Biden is still preferred.

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