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Market News Number of cases in Europe and the United States soars,leading crude oil plunges to 5-month low. Source: OPEC may take action next month

Number of cases in Europe and the United States soars,leading crude oil plunges to 5-month low. Source: OPEC may take action next month

The number of confirmed new crowns rebounded, and Germany and France reintroduced restrictions, causing crude oil to fall sharply on Thursday.

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Crude oil futures rose during Asian trading hours. For December crude oil futures on the New York Mercantile Exchange, the transaction price rose by 0.91% to USD36.50 per barrel before the deadline; the January transaction price of Nymex Brent crude oil rose by 0.86% to USD38.59 per barrel; and Bren The contract price of special crude oil and crude oil is set at USD2.09 per barrel.


The number of confirmed cases of the new crown has rebounded, and Germany and France have imposed restrictions on activities, causing crude oil to fall sharply on Thursday. The Wall Street Journal reported that the United States announced on Wednesday that there were 79,000 newly diagnosed cases, which was the second consecutive day that the number of newly diagnosed cases exceeded 70,000 in a single day, as some states announced a surge in infection rates.


Warren Patterson, head of commodity strategy at ING, predicts, “The latest wave of COVID-19 is putting pressure on oil demand, and since the price of ICE Brent crude oil has now fallen below $40 per barrel, OPEC+ is likely to be forced to take action at the end of November meeting."


Biden is favored to oil prices

The United States announced the third quarter GDP yesterday, with a record growth rate of 33.1%, but failed to provide support for crude oil prices. Jason Schenker, President of Prestige Economics, said, “It is expected that the future growth rate will slow down significantly. In addition, we expect that the US real GDP will not return to the level of the fourth quarter of 2019 until 2022.”


The US presidential election is still the biggest key to oil prices. If the Democratic Party wins the election, Biden will return to the Iran nuclear agreement and open the door to the lifting of Iran's sanctions, which will bring a daily supply of 1.5 million to 2 million barrels of crude oil to the market.



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