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Tuesday, July 27, 2021

Oil prices are falling on new concerns about oil demand

Distribution COVID-19 continues to be the main factor of uncertainty for the oil market

Moscow, 14 Okt – news Agency Neftegaz.RU. Prices oil today corrective decline on new fears about demand in a pandemic coronavirus infection COVID-19.

13 Oct 2020 the cost of oil futures varieties December Brent on London exchange ICE Futures rose 1.75%, to 42.25 USD. U.S./bbl.

Futures for WTI for November in electronic trading on the new York Mercantile exchange (NYMEX) rose by 1.95% to of 40.20 USD. U.S./bbl.

14 Oct 2020 oil prices are falling.

By 11:00 MSK price of the December futures Brent on ICE Futures fell 0.47% to 42.25 USD. U.S./bbl.

The WTI oil futures for November in electronic trading on NYMEX has fallen in price on 0,55%, to us $ 39,98. U.S./bbl.

Prices natural gas decline after strong growth in previous days.

13 Oct 2020 futures for natural gas for November in electronic trading on NYMEX fell by 0.90% to 2,855 USD. USA/mn BTU.

By 11:00 on 14 October prices decreased by 5.15% to 2,708 USD. US/million BTU.

Distribution COVID-19 continues to be the main factor of uncertainty for the oil market.

OPEC in its monthly report improved the Outlook for oil demand in 2020, worsening at the same time the forecast for 2021.

The forecast for 2020 raised by 60 thousand bbl./day compared to the previous report, to 90,29 million barrels./day.

According to OPEC, in 2m quarter of 2020, oil demand in the world fell to of 82.58 million barrels./day, but in 3m quarter 2020 recovered to 90,99 million barrels./day and 4m quarter of 2020 is expected to increase to 94.86 million barrels./day.

This trend reflects the gradual weakening of quarantine measures for preventing the spread COVID-19, but the current growth in the number of cases of infection in Europe and the United States may restrict economic recovery and oil demand.

In this regard, the Outlook for oil demand in 2021 OPEC has decreased on 20 thousand Barr./the day before 96,84 million barrels./day.

According to the University D. Hopkins, as of October 14, 2020, the number of cases in the world since the beginning of the pandemic was over 38,141 million, the number of deaths exceeded 1,086 million

In the United States during the pandemic revealed more than 7,858 million cases 215,910 thousand people died.

In Russia the number of new cases COVID-19, fixed for a day, set a new record, exceeding the 14 th.

Just according oberstab to combat the spread of coronavirus infection, 14 Oct revealed 14,231 thousand new cases per day, the total number of cases exceeded 1.34 million, the number of deaths totalled 23,205 thousand, recovered almost 1.04 million people.

A mixed forecast for the extraction of shale oil in the US introduced the energy information Administration (EIA) of U.S. Department of energy, which also alerted the market.

On the one hand, the Ministry predicts decline of oil production in major shale basins in the United States in November, 2020 at 121 thousand Barr./day (1.5%) compared to October, to 7,692 million barrels./day.

However, assessment of the current production of shale oil in the US was higher than forecasted – 7,813 million barrels./day compared to expectations of 7.64 million barrels./day.

Real production data, ahead of the forecast, which can be considered as a sign of recovery of oil production in the United States.

Earlier, the EIA noted that U.S. shale companies to actively return of wells in operation in response to the rise in oil prices.

US stocks closed higher after 13 October 2020 in the red zone.

The Dow Jones Industrial Average was down 0.55% to 28679,81 p.

Standard & Poor’s 500 was down by 0.63% and amounted to 3511,93 p.

The Nasdaq Composite fell 0.1% to 11863,9 p.

Bitcoin moved lower.

October 14, 2020 at 11:00 Bitcoin has fallen in price on 0,42%, to 11426,9 dollars. US/bitcoin.

The ruble reduced the dollar and Euro.

October 14, 2020 at 11:00 Moscow time the ruble fell against the US dollar by 0.34% to 77,3087 RUB/USD. USA.

Against the Euro the ruble fell by 0.33% to 90,7666 RUB/EUR.

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