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

From Nvidia to Xiaomi: What's Driving Stock Market Growth and Decline Today

Indices Rising: Dow 1.78%, S&P 500 2.05%, Nasdaq 2.47% Consumer Confidence Recovers in May Temu Parent PDD Holdings Falls on Quarterly Revenue Slip Chinese Xiaomi Shares Set to Rise 2.3%

Thomas Frank 12:06 2025-05-28 UTC+2

Whoever doesn't risk a recession doesn't reduce the national debt? Trader's calendar on May 29–31

To be at the center of global attention and to "shape the planet's destiny" — that's what Donald Trump enjoys most. For him, it's essential to constantly generate headlines

Svetlana Radchenko 11:47 2025-05-28 UTC+2

US Market News Digest for May 28

The S&P 500 index has broken through the key 5,908 level, signaling the end of its recent correction and opening the door to further upside. A break above the resistance

Ekaterina Kiseleva 11:25 2025-05-28 UTC+2

US Market News Digest for May 27

US President Donald Trump announced a 50% tariff on imports from the EU, yet financial markets responded with restraint. Investors are increasingly adopting a "threat and retreat" strategy, buying stocks

Ekaterina Kiseleva 11:54 2025-05-27 UTC+2

Nvidia on the agenda: markets await quarterly report, dollar nears fifth straight monthly decline

Stock markets showed mixed dynamics on Tuesday after Donald Trump unexpectedly postponed the introduction of the promised 50% tariffs on goods from the European Union. The move only increased uncertainty

Thomas Frank 11:31 2025-05-27 UTC+2

Gold at $4,200? Why the Market Is Once Again Preparing for a Historic Rally

The gold market has recently been highly volatile, with dramatic movements in both directions. After breaking above $3,000 per ounce, the metal entered a phase of heightened volatility—testing resistance

Anna Zotova 00:23 2025-05-27 UTC+2

Bitcoin hesitates whether to pull back to $100,000 or climb to $115,000

The world's first cryptocurrency finds itself in limbo. After a recent rally, it pulled back and then settled. At the moment, Bitcoin is at a crossroads, with market participants closely

Larisa Kolesnikova 15:16 2025-05-26 UTC+2

All eyes on Nvidia as markets brace for fresh turbulence

Nvidia's results, the final earnings report from the Magnificent Seven, are set for release on Wednesday. Meanwhile, Donald Trump and European markets are back to square one. The 30-year

12:58 2025-05-26 UTC+2

US Market News Digest for May 26

Investors have resumed buying shares of Freeport-McMoRan Copper & Gold following the end of its correction phase and subsequent consolidation. Optimism is fueled by technical signals and stabilization

Ekaterina Kiseleva 12:01 2025-05-26 UTC+2

The Nvidia Effect: Can Markets Withstand the Latest Wave of Pressure?

Nvidia results due Wednesday, last of Magnificent 7 earnings Donald Trump and European markets back to square one 30-year Treasury yields top 5% in a week S&P 500 falls more

Thomas Frank 08:44 2025-05-26 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.